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After Weak U.S. Second-Quarter GDP, Economists Say Worse to Come

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Economists say the reported 1.9% GDP growth for the second quarter of
2008 was boosted by a 1.5% increase in consumption and a 2.4% gain in net
exports. The figure was lower than expectations, however, as inventories
saw a sharp reduction.

Aside from the headline, the big news came from revisions to
the previous two quarters

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Written by admin

July 31st, 2008 at 7:13 am

Preview: Second Quarter GDP Expected to Post 2.3% Growth

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The consensus forecast expects U.S. GDP growth to
come in quite a bit better than the two previous quarters, as exports
have surged on the weak dollar and the fiscal stimulus package has
provided a boost to consumption.

The advance Q2 GDP report is expected to show growth of 2.3% in
Thursday’s report from the Bureau of Economic Analysis, a significant
advance following 1.0% growth in Q1 and a dismal 0.6% rate in the final
quarter of 2007. However, forecasts are abnormally wide for the report,
ranging from 0.9% to 4.2%.

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