GDP For Q4 2011 At 2.8 Percent: Is This A Good Number Or Not?
3 reasons GDP Q4 2011 at 2.8 percent is – ok. It’s a more than decent number.
The U.S. gross domestic product for the fourth quarter of 2011 was announced today. The U.S. grew at 2.8 percent in the last quarter but many economists were expecting economic growth at around 3 percent. The number shows the economy is turning around but hasn’t gone into full upswing growth mode. There are three major reasons why this number is a positive for the economy and future growth forecasts.
3 Reasons GDP Q4 2011 At 2.8 Percent Is – OK
- The 2.8 percent growth for the last quarter of 2011 is the best rate of growth in over 1-1/2 half years and a quick check at some of the growth estimates from just a few months ago show many economists were not expecting that level of growth for a few years/quarters. The increased rate of growth at 2.8 was much better than 1.8 from the third quarter of 2011.
- Government spending was a significantly weaker factor than usual. The decrease in government spending didn’t help the economy grow and defense spending dropped by 12.5 percent which doesn’t happen every quarter.
- Consumer spending as a share of GDP increased 2 percent and business spending also grew which suggests this trend remains in tact. If consumer sending can rise slightly, this would have a positive effect on growth for the next quarter.
The economy is still showing mixed data results and we would expect this to continue for the next few quarters. Our outlook remains unchanged at mixed-positive. Economic growth from 1.8 to 2.8 per quarter is not consistent with a possible recession 2012.
Tory Capital Economic Outlook Measurements Below:
- Positive
- Mixed Positive – Current Tory Capital Economic Outlook
- Mixed
- Mixed Negative
- Negative
