Second-Quarter GDP

Second-quarter GDP growth was revised higher to 2.9% today from the initial estimate of 2.5%. I knew this was going to be a higher revision. I just didn’t know how much.
The bottomline is that I don’t see this as being a soft landing scenario. At least, not just yet. Let’s add some perspective. In the 10 quarters previous to Q2, the economy grew by an average of 3.4% a year. Now we’re tossing in a 2.9%-er. That’s not a big change. It’s still well within the bounds of its previous trend. Three of those 10 quarters had growth less than 2.9%.

Posted by on August 30th, 2006 at 8:50 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.