GDP Isn’t Growing Fast Enough for Markets
Stock and bond investors have been expecting more.
A little dose of reality for our Trumpkin. Donny lied to you. Face the facts.
https://www.bloomberg.com/view/artic...gh-for-markets
President Donald Trump promised on Thursday that the second-quarter gross domestic product number would be unthinkable. The number was, instead, what everyone expected, and that could pose a problem.
While the 4.1 percent GDP number was the best in four years, it wasn’t the strongest quarterly growth since the recession. And
the number appears to be pumped up by a temporary spike in exports ahead of threatened tariffs as well as a jump in government spending. Economists say neither is sustainable. They expect GDP growth to cool to 2.8 percent in the third quarter. Year over year, as opposed to quarter over quarter, GDP was up only 2.8 percent. Go by current estimates, and GDP growth for all of 2018 will come in at 2.9 percent, short of the 3 percent that at least psychologically would suggest some fundamental shift in the economy.