Freeman

IN BRIEF

Second-quarter GDP cut to 1.3 percent

SEPTEMBER 27, 2012 by CHUCK GRIMMETT

“Economic growth was much weaker than previously estimated in the second quarter as a drought cut into inventories, setting the platform for an even more sluggish performance in the current quarter against the backdrop of slowing factory activity.

Gross domestic product expanded at a 1.3 percent annual rate, the slowest pace since the third quarter of 2011 and down from last month’s 1.7 percent estimate, the Commerce Department said in its final estimate on Thursday.

Output was also revised down to reflect weaker rates of consumer and business spending than previously estimated. Outlays on residential construction export growth were also not as robust as had been previously estimated.” (Reuters)

Perhaps low consumer and business spending are the effects, not the causes, of weak economic growth?

FEE Timely Classics

Consumer Spending Doesn’t Drive the Economy by Mark Skousen

GDP: Who Needs It? by Warren Gibson

Chuck Grimmett August 2013

ABOUT

CHUCK GRIMMETT

Chuck Grimmett is a project manager at eResources. Previously, he was FEE's director of web media. Get in touch with him on Twitter: @cagrimmett.

comments powered by Disqus

EMAIL UPDATES

* indicates required

CURRENT ISSUE

October 2014

Heavily-armed police and their supporters will tell you they need all those armored trucks and heavy guns. It's a dangerous job, not least because Americans have so many guns. But the numbers just don't support these claims: Policing is safer than ever--and it's safer than a lot of common jobs by comparison. Daniel Bier has the analysis. Plus, Iain Murray and Wendy McElroy look at how the Feds are recruiting more and more Americans to do their policework for them.
Download Free PDF

PAST ISSUES

SUBSCRIBE

RENEW YOUR SUBSCRIPTION