August 31, 2010

Carrick: Margin of error for U.S. economy is narrowing

U.S. economic growth in 2010’s second quarter has been revised down to 1.6% by the Bureau of Economic Analysis.

In the BEA’s first estimate for Q2 – also known as the advance estimate – the figure was a higher 2.4%. The +1.6% is less than half of the first quarter’s +3.7%.

The U.S. experienced quarter-to-quarter gross domestic product (GDP) declines in five out of six quarters, from the start of 2008 through the first half of 2009.

The fastest rate of growth in the recovery phase that began last summer occurred in the final quarter of 2009, at +5.0%.

“The latest data makes it clear that the U.S. economic recovery has significantly slowed,” Alex Carrick says in his latest report.

“In fact, there is a great deal of speculation in the media about the possibility of the U.S. slipping back into recession.”

Most of the blame for this predicament is placed on weak jobs markets.

“No doubt there is some validity to this conclusion, but the problem is a little more complex,” Carrick says.

You can read his full report here .

-RCD Digital Media

Print | Comment