July 15, 2008

Pretty darn strange recession we're having....

Wall Street Journal...

Trade Data Boost Second Quarter GDP Estimates
Today’s data on May international trade prompted several economists to boost their tracking estimates of second quarter GDP growth. Macroeconomic Advisers boosted its estimate to 3.3% (annual rate) from 3% as did HSBC. Morgan Stanley raised its estimate to 3.9% from 3.8%. GDP grew just 0.7% in the first quarter.

Although the trade deficit rose to $60 billion in May, as expected, from $58.5 billion in April, the real trade deficit — which adjusts for changes in prices and is what affects real GDP, was flat. That suggests the real deficit will be narrower in the second quarter from the first, implying a significant contribution to second quarter growth after subtracting from it in the first.
Posted by John Weidner at July 15, 2008 5:46 PM
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