Revised Q2 GDP = 1.0%

The government just revised second-quarter GDP growth down to 1.0% from the initial estimate of 1.3%. Wall Street was actually afraid that it might be worse. I’ll remind you that the second quarter began four-and-a-half months ago and ended one-and-a-half months ago.

Over the last four years, the U.S. economy has grown by 0.66% in real terms. The economy has shrunk by 0.49% from its all-time peak in the fourth quarter of 2007. Over the last 11 years, the economy has grown by 17.88% (or 1.51% annualized) which is less than it grew in the four years prior to that.

Here’s a look at real GDP based on 2005 dollars. What’s most troubling is the last two data points.

By the way, what letter describes this…V-shaped? U-shaped? Maybe an N? I really don’t know anymore.

Posted by on August 26th, 2011 at 8:33 am


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