Friday, August 26, 2011

2nd Quarter Growth Cut

The other day I was writing about how the government always gets the economic numbers wrong. They got them wrong again. U.S. growth slows in Q2, outlook less dismal

Second quarter growth had been pegged at a rate of 1.3%. Today we find that number has been lowered to rate of 1.0% (And this isn't the final revision, not by a long stretch.)

So in the first quarter, the economy grew by an annualized rate of 0.4 percent, followed in the second quarter by a slightly less anemic rate of 1.0%. That doesn't sound good.

But never fear, the same folks who told you last week (earlier this week) that 2Q saw 1.3% and had to change their tune almost immediately, are assuring us that in the 2nd half of the year, that rate will "accelerate" to 2.0%. What could go wrong with that prediction?

No comments: