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Friday, July 26, 2019

Economy Beats Expectations: GDP Growth at 2.1% GDP in 2nd Quarter — Alleviates Recession Fears

Economic growth for the second quarter of 2019 beat expectations.
GDP increased 2.1%, down from 3.1% from the first quarter, but higher than the 1.8% expectations.

The growth number takes the steam out of those pushing recession fears.

Quarterly GDP rates, via Zero Hedge
CNBC reported:
 
Growth decelerated in the second quarter, but not by as much as Wall Street thought, as tariffs and a global slowdown weighed on the U.S. economy, the Commerce Department reported Friday.
GDP increased 2.1%, down from 3.1% from the first quarter, and the weakest increase since the first quarter of 2017 when President Donald Trump took office. Dow Jones Q2 estimates were for 2% growth.
However, the underlying numbers in the report seemed to take steam out of the recession fears that have been much of the talk among economists and policymakers at the Federal Reserve.
“The recession talk was always overstated,” said Michael Arone, chief investment strategist at State Street Global Advisors. “Those that were doing the Chicken Little, the sky is falling, we’re headed for recession talk were clearly early in that assessment. The economic data continue to suggest that the economy isn’t near recession, at least in the next year or so.”

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