GDP Growth Rate 2% - This is Starting to Feel Real

Third quarter GDP grew at a annual rate of 2%. This is the third or fourth consecutive quarter of GDP growth.


This is great news and what makes it even better is the notion that not only is the GDP still growing but the overall economic growth rate is rising. This means that we are growing faster and faster. July through September yielded a growth rate of 2% and the months of April through June hosted a growth rate of 1.7% thus the rate has grown by about 15 - 20% which is outstanding.

The unemployment rate is still high, now at 9.6%, but folks have been expecting the unemployment rate to stay around these levels. Plus the free market, or rather the private sector, has created more jobs over the last nine months or so. They are running on a surplus. It is government budget cuts, and thus the need to eliminate jobs, or at least not hire, that has created the negative job figures.

Consumers are both saving and spending more. The notion that consumers are increasing their spending despite the decline in consumer credit is wonderful. The health of American consumer personal finance is on the rise there is no doubt about it.

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Economic Growth - GDP 2.2% - Is It Real?

The final numbers are in for the third quarter and the numbers show a 2.2% growth in the Gross Domestic Product, also referred to as GDP. Now this figure can be good or bad news depending on who you talk to.

If you ask me any positive growth is great news. I mean things have seemed so bad that the notion that economic activity is on the rise is extremely appealing.

On the other hand the expectations were set for about 3% so many investors were spooked when they saw a figure that was about 30% or so lower then they were thinking. Though other figures that came out along side these numbers helped ease the pain. For instance existing home sales, as well as home prices were both very positive.

I for one am just glad to see things going the right direction. But I can no help but to feel a bit skeptical of the numbers.

When I am out and about in the real world things just don't match the financial head lines. For instance, I noticed that the trick or treat tradition no longer exists in any comparative form to just 10 years ago. Though this is an observation of a local area, and hardly a sophisticated indicator, it does tell me that if there is growth, then the lack of trick or treaters must be accounted for some where. But where? I also noticed that there were no xmass tree dealers in town this year. They use to pack each and every parking lot. Where did they go?

I have seen little reason to believe that there has been any sort of growth. All I have witnessed, for my self, is less.

A little less of everything.

Any Thoughts?