#191. Real GDP revised up for Q2 – What Recession?Posted on
Real GDP revised up for Q2 – What Recession?
Government sources recently released revised information for second quarter GDP (gross domestic product), which was revised up to a 3.3% annual growth rate for the quarter versus an originally estimated 1.9%. Based on these revisions, real GDP is up 2.2% versus a year ago.
The largest upward revisions were for net exports, which added 3.1 points to real GDP growth rather than the original estimate of 2.4, and inventories, which subtracted 1.4 points from the growth rate rather than the original estimate of 1.9. We reported in The Agurban on July 22, 2008, Good News for U.S. Small Businesses, that for the first five months of 2008, U.S. small and midsize businesses accounted for 97% of U.S. exporters.
The largest drag on real GDP continues to be home building, which subtracted 0.6 points from the growth rate. If housing were excluded, real GDP grew at a 4.0% rate in Q2, and is up 3.2% versus last year.
I’ve said it before; the economy is much stronger than the TV pundits would have us believe. The evidence continues to show this.