BLS: 2nd Quarter Estimates Show U.S. Economy Expanding - Kind of
A report this morning by the Bureau of Labor Statistics (BLS) estimates that the U.S. economy grew 2.4% in the second quarter. While that growth shows the nation as a whole is out of the recession, the growth rate was down from the first quarter when real GDP grew 3.7%.
Economists at the BLS gave the following rationale for the slowdown in growth:
The deceleration in real GDP in the second quarter primarily reflected an acceleration in imports and a deceleration in private inventory investment that were partly offset by an upturn in residential fixed investment, an acceleration in nonresidential fixed investment, an upturn in state and local government spending, and an acceleration in federal government spending.
In previous quarters, we had seen that investment by business was driving growth. Now, it appears that the pubic sector is responsible for keeping GDP on the positive side. That is obviously going to be bad news for Idaho, the state that led the nation in reducing state employment, cutting 6.9% of the workforce by the time the fiscal year closed out on June 30.
So if you wonder why your state economy is still floundering as we enter the third quarter, you now have a pretty good idea.
Economic Development, Economy, Government | admin July 30, 2010
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By Debbie Courson Smith, August 11, 2010 @ 10:36 am
I delved into some of those BLS stats last week, to try to figure out why unemployment doesn’t LOOK that bad, but it is that bad. What a great info site. Don’t know why we always trumpet the unemployment rate when the total unemployment picture (including those who have stopped looking for work because they can’t find a job, those who are working part-time instead of full time) is a better reflection of reality. Add up some of those categories, and “unemployment” can be close to 20 percent, or more, in some parts of the country. Nice to meet you last night Chris!