Thursday, Aug 28, 2008
What recession?
FT: Stocks rally on surprise US GDP boost
Woes of the US sub-prime meltdown have been with us for the best part of 18-24 months but the US is still resolute in not tipping into a technical recession. It's fair to say that the US is certainly not out of the woods yet but this data will provide a much needed boost to an economy that many doomsayers proclaim as being on its knees.
Posted by denzil @ 10:19 PM (208 views) Add Comment
1 Comment
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1. new user 2007 said...
"A combination of factors helped GDP in the second quarter, including liquidation of business inventories being less sharp than estimated – a sign that companies may be marginally less gloomy about future demand for their products."
OR...they were overly optimistic and so bought more parts than warranted by their sales. Next quarter these will fall as firms now need to draw stocks down?:)
In the first quarter there was help provided by weak imports (a bad sign going forward i.e. domestic demand is weak). Now it was provided by exports. Since then the US$ has strengthened (less competitive) and other countries will reduce import demand for US exports, as their economies weaken.