News
Double-Dip?
August 12, 2010
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| Economic growth eased in Q2 from the pace set in Q1, fueling concerns the fragile economy could slide into a double-dip recession, reports Marcus & Millichap. The underlying components of GDP demonstrate that the economy continues to expand as growth spreads to additional sectors. For the first time since 2005, all of the major components of GDP, with the exception of imports, moved into positive territory, suggesting the recovery is becoming increasingly broad-based. In the Q2, GDP expanded at a 2.4% annualized pace, down from a 3.7% gain in the preceding period.Business spending drove growth, rising 17%, following a 7.8% advance in Q1. Thus far in the recovery cycle, business investment has been directed primarily to rebuilding depleted inventories and making technology upgrades, rather than hiring. Conclusion: Is it possible the economy is just doing all this just to mess with us? |
