-1% is < 2.5%
by Tom on July 31, 2009
in Market Musings
Well, it’s a case of “not so bad.” GDP was expected to be down by 1.5% and it was only down 1%.
A couple of thoughts:
- If you recall the discussion we had earlier this week, the number that Fed Chairman Bernanke uses is a GDP of 2.5% for unemployment to remain stable.
- We hit a negative 1% GDP for the 2nd quarter of 2009. That’s a LOT better than than what had in the first quarter of 2009.
- But we’re still at 3.5% below what is needed to reverse the employment losses.
I don’t know if you have seen the cover of Newsweek, but I think it describes it quite well….
The U.S. economy contracted at a slower-than-expected pace in the second quarter as the slump in business and residential investment moderated sharply, according to government data on Friday that backed views the recession was winding down.
