Home > News > Good News For Obama: Fourth-Quarter Estimated GDP 5.7%

Good News For Obama: Fourth-Quarter Estimated GDP 5.7%

Since Obama took over, none of these estimates survive for long.  They are always adjusted down.

  In this case I hope its not.  I want the US to do better and sadly it is suffering.  Sadly, any good news is used by Obama to back up the idea that his tripling the deficit, government takeovers, and bailouts work when most of the problem is his actions.

The administration got some unexpectedly good news on the economic front this morning, although it had to be qualified almost immediately.  Annualized GDP in the fourth quarter rose 5.7%, the second quarter in a row of growth in the economy, which makes the recovery official.  However, almost two-thirds of it came from a slowdown in liquidation of inventories, leaving an anemic 2.2% of actual growth:

The U.S. economy grew at a faster-than-expected 5.7 percent pace in the fourth quarter, the quickest in more than six years, as businesses made less-aggressive cuts to inventories and stepped up spending.

The Commerce Department said on Friday its first estimate put fourth-quarter gross domestic product growth at its fastest pace since the third quarter of 2003. The economy expanded at a 2.2 percent annual rate in the third quarter.

Analysts polled by Reuters had forecast GDP, which measures total goods and services output within U.S. borders, growing at a 4.6 percent rate in October-December period.

CNBC points out that actual growth is still muted:

Growth was boosted a sharp slowdown in the pace of inventory liquidation, a factor that could mask the strength of the economic recovery from the longest and deepest downturn since the Great Depression.

But even stripping out inventories, the economy expanded at an annual rate of 2.2 percent, accelerating from the 1.5 percent increase in the third quarter, reflecting relatively strong performance from other segments of the economy.

Hot Air » Blog Archive » Fourth-quarter GDP 5.7%

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