Recession: Economy Grows 3.3% in Q2

by Stephan Tawney on August 28, 2008

Funny, this isn’t a top story on the MSM sites (though Drudge, to his credit, red texts it). It would seem that the recession the left insists we’re in is on hold yet again because facts got in the way.

The economy shifted to a higher gear in the spring, growing at its fastest pace in nearly a year as foreign buyers snapped up U.S. exports and tax rebates spurred shoppers at home.

The Commerce Department reported Thursday that gross domestic product, or GDP, increased at a 3.3 percent annual rate in the April-June quarter. The revised reading was much better than the government’s initial estimate of a 1.9 percent pace and exceeded economists’ expectations for a 2.7 percent growth rate….

The biggest factor in the second-quarter’s rebound was robust sales of U.S. exports to other countries. The weaker value of the U.S. dollar has bolstered those sales. Exports grew at a 13.2 percent pace in the spring. That was much stronger than the government’s initial estimate of a 9.2 percent growth rate, and more than double the 5.1 percent growth rate logged in the first quarter…

The improved trade picture added 3.1 percentage points to second-quarter GDP, the most since 1980.

Imports, meanwhile, fell at 7.6%.



Leave a Reply