by John Rubino
The Consumer Metrics Institute is out with commentary on the latest GDP revision. Here’s an excerpt:
As we noted last month, on the surface a 2.38% annualized growth rate at nearly full four years into a recovery is good news — and a growth rate that many other global economies would currently be pleased to be reporting. And looking at the details provides us with some reasons for optimism:
– Consumer spending was sustained in spite of tax increases,
– Fixed investments continued to grow (although at a slower pace than in the prior quarter),
– Exports were still growing (slightly) after the prior quarter’s of contraction.
But one overriding issue in the data continues to suggest a reason for caution: