Second Quarter GDP Revised Down to Dismal 1.3%

The jobless claims report this morning was a little better than usual, but it will probably be overshadowed by the news that the second quarter GDP was revised down to a dismal 1.3%. Tyler Durden at Zero Hedge pointed out that the number is actually lower than 1.3%.

So much for the US recovery (we will never tire of saying that). After the first Q2 GDP revision bubbled up from 1.5% to 1.7%, the sellside brigade was confident that the rate of growth would continue and final Q2 GDP would be in line. Instead, we got an absolute shock of a print, with the final Q2 GDP print coming in at a ridiculously low 1.25% (rounded up to 1.3%), below the lowest Wall Street estimate of 1.4%, and the lowest number since the revised 0.1% reported in January 2011. Here is the final GDP trendline: Q4 2011: 4.1%; Q1 2012: 2.0%; Q2 2012: 1.25%. Luckily, at least “housing has bottomed.” (Read More)

If that’s not bed enough, durable goods orders have totally tanked. But I’m sure the media will breathlessly report the jobless numbers and tell us everything is fine in the Obama economy.
Update: The jobless claims reported last week were revised up to 385,000, so the media can report a great big drop in jobless claims this week.

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