Economy In U.S. Shrank At 0.7% Rate In Second Quarter, Less Than Estimated

[Purveyor]

Source: Bloomberg

By Shobhana Chandra

Sept. 30 (Bloomberg) -- The worst U.S. recession since the Great Depression eased more than anticipated in the second quarter, setting the stage for a recovery to take hold in the last half of 2009.

The world’s largest economy shrank at a 0.7 percent annual rate from April through June, the best performance in more than a year, revised figures from the Commerce Department showed today in Washington. Gross domestic product contracted at a 6.4 percent pace in the first three months of 2009.

Government stimulus plans such as “cash for clunkers” and first-time homebuyer credits are giving manufacturing and housing, the two areas at the center of the economic slump, a boost this quarter. Federal Reserve policy makers are among those concerned that gains in consumer spending will not be sustained as unemployment climbs and incomes stagnate.

“The economy was certainly bottoming out in the second quarter,” said Michelle Meyer, an economist at Barclays Capital Inc. in New York. “Businesses are in better shape to start production. Massive government spending has been supportive of growth and will continue to help.”

Companies cut an estimated 254,000 jobs this month, more than forecast, a private report based on payroll data showed today. The drop, which was the smallest since July 2008, compares with a revised 277,000 decline the prior month, figures from ADP Employer Services showed. The report was forecast to show a decline of 200,000 jobs, according to the median estimate of 33 economists in a Bloomberg survey.

Read more: http://www.bloomberg.com/apps/news?pid=20601068&sid=a3g5lqDmy2N8

[ixion]

1. recovery is just around the corner

:eyes:

[Kahuna]

2. There are actually people unrecommending this! They need

to really examine their motives. :wow:

[rmp yellow]

3. I think it's a good sign. But maybe the unrecommenders just lost their jobs

I wouldn't be jumping out of joy due to this news if I was out of work either.

For now I am personally happy with the news though.

[Kahuna]

4. I've been out of work for 11 months myself. Still, I'm not going to unrecommend..

positive news because of that.

[Name removed]

5. Deleted message

Message removed by moderator. Click here to review the message board rules.

[debbierlus]

7. I unrecommend it because it is utter bullshit - there is no recovery coming

Six people for every job opening.

Hundreds of thousands of jobs being lost every month.

Our manufacturing base has all but disappeared.

Two people working full time is not enough to meet basic expenses.

Record foreclosures - the balloon loan bubble hasn't even popped yet.

This is pure and utter bullshit. The government just spent a billion dollars on cash for clunkers. Of COURSE, the shrinkage is down with that type of number and the economy still SHRANK.

A true recovery from this mess will take years, if not a decade.

[HamdenRice]

8. And Obama is still President!!!

The real source of your displeasure.

[twitomy]

10. Wasnt the Stimulus going to keep the unemployment rate under

8%??

It was utter bullshit and the taxpayers are stuck with the bill...
I have been out of work since May...this "Happy Days Are Here Again" tripe is getting on my nerves.

[Kahuna]

11. Ah! I should have guessed. Still have a hard on because Obama

is president, huh? :rofl:

[sofa king]

6. Seeing as I never recovered from the recession of 2001...

...I suppose I can at least take solace that some few others have not joined my lot.

[mbperrin]

9. So LESS is the new MORE!

Less bad news is the new good news!

What part of contraction is not understood here?

[bluestateguy]

12. On PAPER the recession is over

but only Wall Street and the statisticians can take comfort from that. It will be 2011 before people really feel like this economy is markedly improving.

[kestrel91316]

13. For the first time in three years I am seeing signs of new businesses

getting ready to open. Two storefronts have major remodeling going on inside, one is going to be a nice restaurant with a patio along the sidewalk and nice french doors of quality wood construction, so there is some money there. And a bank building that has stood empty for 3 years is being remodeled and expanded and something is going in there, not sure what.

More excitement than I've seen in this neighborhood in a long time.

Unfortunately, another struggling florist has gone under - I think they took the biggest hit of any type of retail place here.

[Kahuna]

14. I'm seeing that too. nt