CNBC: U.S. GDP rose 6.5% last quarter, well below expectations
* GDP rose at a 6.5% annualized pace in the second quarter, according to the Commerce Department’s first estimate Thursday.
* That was well below the Dow Jones estimate of 8.4%.
* Initial claims for unemployment insurance also missed expectations, with the 400,000 total above the 380,000 expectation.
The U.S. economy rose at a disappointing rate in the second quarter, the Commerce Department reported Thursday in a sign that the U.S. has escaped the shackles of the Covid-19 pandemic but still has more work to do.
Gross domestic product, a measure of all goods and services produced during the April-to-June period, accelerated 6.5% on an annualized basis.
That was slightly better than the 6.3% gain in the first quarter, which was revised down narrowly.
Read more ....
Update #1: US economy surpasses pre-pandemic size with 6.5% Q2 growth (AP)
Update #2: GDP Huge Miss: Economy Grew Just 6.5% In Q2, Far Below 8.5% Expected On Surprise Inventory Drop (Zero Hedge)
WNU Editor: Many in the pundit class are saying the US economy is strong .... U.S. economy tops pre-COVID level with GDP surging at 6.5% pace in the spring (Market Watch).
I am not sure about that. If you factor in inflation. This 6.5% annualized pace in the second quarter is closer to zero.
And here is some more bad news.
Almost a third of the U.S. adult population do not have a job (link here).
But what really caught my eye was the US FED's announcement yesterday that they will not stop printing money. In fact .... they will continue to keep interest rates low, while buying back securities.
This is not my definition of a robust and healthy economy.
This is actually a sick economy propped up with massive stimulus spending that is near the end of its "shelf life".
Update: This is going to hurt a lot of people .... Biden to allow eviction moratorium to expire Saturday (AP)
Update #2: I have lost count over the years on how many of these infrastructure deals were passed, but their impact was negligible .... AOC and The Squad accuse 17 bipartisan senators of RACISM for negotiating $1T infrastructure deal - and blast Democrat Sinema's refusal to support $3.5T 'human infrastructure' package (Daily Mail).
