Meanwhile, Back in the Economy …..
The ISM Manufacturing Report comes out at 10 AM, but I won’t be able to react to that or other economic news online until this evening.
In the meantime, here are a couple of nuggets worth noting.
James Pethokoukis at US News, written at the Democratic National Convention BEFORE the surprise upside GDP revision to 3.3% last week:
I keep hearing a lot of this sort of pessimism, both in the speeches and among the delegates: “America is facing its greatest economic challenges since the Great Depression.” Really. That’s a pretty big stretch given that we’ve only had one quarter of negative economic growth in the past year, unemployment is still below 6 percent, incomes were growing briskly from 2003-2007, and productivity has averaged more than 2.5 percent a quarter during the past year and a half. Some perspective, people!
Bloomberg’s first two paragraphs last Thursday relating to the GDP announcement:
The U.S. economy expanded faster than previously estimated in the second quarter, helped by a surge in exports that will probably wane as Europe and Japan head toward recessions.
Gross domestic product increased at a 3.3 percent annual pace, compared with the initial estimate of 1.9 percent, the Commerce Department said today in Washington. Trade contributed the most to U.S. growth in almost three decades.
What? Our economy is still doing better than other major countries? How can that be? Paul Krugman at the New York Times told me just a couple of months ago that Europe was doing sooooooooo much better (sorry, don’t have time to find a link).










