The economy contracted 1% in the second quarter this year, the fourth in a row and the fifth since the recession started in 2007. In a very unusual move, the BEA did not change its estimate of GDP growth in the "second" report, released today. Usually, there are significant revisions in the second report, as seen in GDP Current Statistics. (Source: GDP News Release)
What It Means to You
Government stimulus is propping up the economy and keeping this recession from turning into a depression. However, a return to normal bank lending is needed for a full recovery.
Keep an eye out for next month's Durable Goods Reports, which will herald the first signs of improvement in economic growth.
Can You Predict When GDP Will Turn Around?
You may be interested in a fun contest hosted by turnaround expert Renee Fellman. She is offering cash prizes to the first person who accurately predicts when the economy will turn around. So far, most people are predicting spring 2010. Check out the contest at "The Turnaround Blogger".
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