Economy healing very slowly

Once again, the economic numbers are mildly better than expected. But joblessness continues to represent the major problem going forward.

The recession faded in the spring with U.S. economic activity shrinking at a pace of just 0.7 percent, Associated Press reported today on new government figures. That’s a better-than-expected showing that buttressed beliefs the economy is growing now.

The small dip in gross domestic product for the April-June quarter follows the 6.4 percent annualized drop in the first three months of this year, the worst slide in nearly three decades, AP writes.

The final revision of second-quarter GDP comes on the last day of the third quarter, when many analysts predict the economy started growing again at a pace of about 3 percent.

A main reason for the second-quarter upgrade — businesses didn’t cut back spending on equipment and software nearly as deeply as the government had thought. Consumers also didn’t trim their spending as much.

Still, unemployment is expected to rise to 9.8 percent from 9.7 percent when the government releases new figures Friday, AP says. And, unfortunately, double-digit unemployment is forecast for later this year.

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13 comments Add your comment

Tyree

September 30th, 2009
3:07 pm

It might be over but…..still feels like a BAD recession to me.

go to www.altshirt.org

September 30th, 2009
3:10 pm

nothing ever goes straight down.. just a bounce in activity.. give it time, the anti-stimulus plan is just keeping us afloat.. Feb 2010, you will another downturn that will set a new low during this bear market ;) ..

TnGelding

September 30th, 2009
3:12 pm

It’s over for everyone but the unemployed and government revenues. The ones that saved for a rainy day will come out okay. The others might not ever fully recover.

TnGelding

September 30th, 2009
3:13 pm

go to http://www.altshirt.org

September 30th, 2009
3:10 pm

Isn’t that what it wass intended to do? But most of it is still in the pipeline, so I think you’re wrong. But we’ll see.

Ben

September 30th, 2009
3:16 pm

Once the markets catch up with actual value (which is unnaturally inflated by ridiculous decisions coming out of D.C.), then we will see a downturn that makes this look like a walk in the park. And we’ll have only the Democrats to blame. You can only prop up an economy on fantasy for so long, then you need actual businesses and wealth creation, or it all goes to hell.

Brian

September 30th, 2009
3:16 pm

Unemployment continuing to increase monthly, the federal imperial gov’t holping back hundreds of thousands of foreclosures across the country, over a trillon dollars in debt and growing by the second. the US Postal service in debt what 4-6 billion and looking like we the taxpayers are going to bail those clowns out.

Oh don’t even get me started on this heathcare debacle, I tell you what America. let me keep my own heath coverage and the folks who want the public option go have at it but when your sick and the gov’t bureaucart tells you the wait to see the Cardiologist is 4 months and you need a heart transplant immediatley. well all I have to tell you is GOOD LUCK SUCKER.

Things are looking up in? ya right!

Melissa

September 30th, 2009
3:29 pm

I am a college graduate with an amazing resume and references. I however, did not go straight into a profession right out of college instead I interned with a prominent company in hopes of beefing up my resume for the business world. Little did I know by the time my internship was up, the recession was in full bloom. Its funny, my family keeps asking if I am applying to anything and truth be told, no I am not. Not because I don’t want to but because every company’s site I look at is on a freeze. So for now, I am a temp with no benefits, no stability and I actually owe more in loans than I have made since I graduated. (The sad part is, my student loans aren’t that high) I believe the worse is yet to come.

go to www.altshirt.org

September 30th, 2009
3:44 pm

I am still short on the market, but time is on my side.. come next year, I will laugh all the way to the bank, because fundamentals say that the market can not sustain the recent 7 month rally.. Get your shorts and get ready for a bigger selloff than the one that occured this time last year :)

Hoppy

September 30th, 2009
3:44 pm

I believe there should be a investigation into that Iraq war. That’s the cause of all this here mess.

go to www.altshirt.org

September 30th, 2009
3:50 pm

we went to war, to try and prevent all this here mess hoppy.. it was not what caused it. Those Democrats should not have made it so easy for uncredit worthy people to buy property that they could not afford.. thats how all this here mess started LOL

Avery

September 30th, 2009
4:05 pm

altshirt is spouting nonsense. “We went to war (in 2003) to prevent a horrible recession (which began in 2007-2008).”

Please.

Please. Elaborate. I thoroughly enjoy glimpses into the the thought processes of the criminally insane.

go to www.altshirt.org

September 30th, 2009
4:31 pm

If you really think that this recession started in 2007 then you are drinking way too much Kool-aid. Our Economy never recovered from the dotcom bubble that busted on March 10 2000. Bush inherited a terrible economy from Clinton as a result of that bubble busting. Of course, Our country was divided when was elected into office. So what was done to unite the people, 9/11, and that is what supposedly led us to war.

During WWII we learned that WAR contributes to our GDP, so to prevent another 1929 our leaders at that time started a WAR to add to our GDP. Well, things were worse than first thought, leading us to where we are now.. IF you are not short this market, or stocking up on GOLD, then you will be very bad off next year!! Just like a Dummycrat to call somoeone names!

professional skeptic

October 1st, 2009
7:09 pm

altshirt says: “Those Democrats should not have made it so easy for uncredit worthy people to buy property that they could not afford.”

I am amazed that we still even hear this tired, worn out, pathetic attempt to pin all the blame on Democrats. No one, but absolutely no one — not a Democrat, Republican, or otherwise — sat at the closing table with a gun to the lenders’ heads to force them to offer bad loans to people who couldn’t pay.

The lenders are now reaping exactly what they deserve for knowingly and willingly – and with full knowledge of the consequences – refusing to perform basic due diligence on their borrowers’ ability to repay mortgage loans.

Unfortunately, the temptation to make a quick buck on closing costs before packaging up the bad loans and selling them off as mortgage backed securities, was what drove lenders to make so many bad loans.