U.S. Economy: Growth Faster Than Initially Estimated on Exports

Courtney Schlisserman and Timothy R. Homan
Bloomberg
Thursday, August 28, 2008

Aug. 28 (Bloomberg) — The U.S. economy expanded faster than previously estimated in the second quarter, helped by a surge in exports that will probably wane as Europe and Japan head toward recessions.

Gross domestic product increased at a 3.3 percent annual pace, compared with the initial estimate of 1.9 percent, the Commerce Department said today in Washington. Trade contributed the most to U.S. growth in almost three decades.

The expansion is likely to weaken in the second half as consumers burdened with falling home values and dwindling job prospects rein in spending. Separate figures today showed the number of Americans collecting unemployment benefits reached a five-year high last week.

(ARTICLE CONTINUES BELOW)

“Outside of trade, the economy is considerably weaker,” said Carl Riccadonna, an economist at Deutsche Bank Securities Inc. in New York. “When you look at the spending, it looks terrible for the second half of the year.”

The increase in GDP last quarter was bigger than the median estimate of a 2.7 percent gain in a Bloomberg News survey of 78 forecasters. The expansion was the fastest since the third quarter of 2007 and followed growth of 1.9 percent in the first three months of the year.

Treasuries dropped after today’s reports, sending benchmark 10-year note yields up to 3.80 percent at 10:18 a.m. in New York, from 3.77 percent late yesterday. The Standard & Poor’s 500 Stock Index rose 0.7 percent to 1,290.95.

FULL STORY CLICK HERE

• 
• Social bookmarks
• 
• Email this article
• 
• Print this page

Comment Terms Of Use

8 Responses to “U.S. Economy: Growth Faster Than Initially Estimated on Exports”

1. n2k Says:
   August 28th, 2008 at 12:14 pm

   Economy?
   What economy?
   You are missing the underlying evil, people.

   http://www.illuminatimatrix.wordpress.com

   But you won’t be now.
   .
   .
   .
   .

2. Still Here Says:
   August 28th, 2008 at 1:07 pm

   Cheap dollar -> Cheaper exports -> Richer corporations -> wealthier CEO’s and shareholders

   Cheap dollar -> Less purchasing power -> Cheaper working slaves -> Poorer civilian population.

   When will people finally understand that the statement ‘What is good for corporations is good for the people’ is a bald-faced lie. It is only good for a very few ‘elites’. The large majority of people will have to pay the price for the imbalance.

   The very few, who hold most power, will do everything in their power to brainwash the population into believing that them having almost everything and most other people almost nothing is a great system. They also lie when trying to influence people into believing that they also have a change to become rich and influential like them. Statistical you have a far better change to be run over by an angry bull in the center of New York.

   Corporations are psychopathic and often have an above average number of psychopaths among their upper echelons. They have only one loyalty, themselves and the rest can drop death, preferably after they have first been parted from their money.

3. Sick of n2k Says:
   August 28th, 2008 at 1:13 pm

   Need 2 Know ,
   Go away . Your website is garbage . These comment sections are not billboards . So , please give it a rest .

4. HiFly Says:
   August 28th, 2008 at 6:15 pm

   It seems that the US economy is a little more resilient then many doom sayers would like us to believe. The statistics point to a downward trend but when compared to other sections of the world (like Spain for example)the US should sail through it without completely collapsing. The biggest drag on economic growth would have to be the false “War on Terror” to prop up a security industry that wants to control every aspect of your life. Now that is the true shutout of freedom and your financial support i.e. paying taxes make all the dreams of the NeoCons come closer to thier Communist point of view.

5. GaryCol Says:
   August 28th, 2008 at 9:17 pm

   With so much of the US industry moved off-shore just what is there left to export? I have not seen anything to indicate what it is that is being exported. Could it be that these exports are in fact imported items (possibly repackaged/labeled) then exported.
   I do know that some corporations have moved their operations out of the USA but as they own the facilities they claim that it is US produced when in fact this production should be listed as imports.
   The American economy has been virtually bankrupt for about ten years, only nobody from the President down has wanted to admit it. The only thing that has kept it viable has been the massive injection of credit. Mainly from China, Japan, India, the Middle East and Russia. Incidentally, those countries that have the most to lose if the American economy was to totally collapse.
   I wonder if this current tension with Russia is prelude to the US defaulting on loans to Russia.

6. Nescio Says:
   August 29th, 2008 at 4:16 am

   Can you say : Election year

7. Not Amused Says:
   August 29th, 2008 at 8:09 am

   @HiFly

   Have you ever heard of Paulson’s Plunge Protection Team, an orchestrated mechanism that attempts to manipulate U.S. stock markets in the event of a market crash by using government funds to buy stocks, or other instruments such as stock index futures.

   The US economy isn’t more resilient, but probably in a far worse state than generally understood by many people. All those indexes regarding the state of the economy are most likely faked or manipulated to present a better picture.

8. jonny Says:
   August 29th, 2008 at 3:00 pm

   great that we have the wealh to help Grow Faster now for Israel