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What recovery? What economic downturn?In early November were the Talking Heads breath presentation Report of the economy "grew" by 3.5% in the third quarter … quarter that the economy is recovering. The end of the economic downturn has also marked the end of the recession that began in the fourth quarter of 2007. He attributes much of this increase in absorption in auto sales. To read the full government report, go to www.bea.gov .
The index of leading indicators economic, which was positive for seven months, also suggests that the economy is in recovery.
Therefore, it is true? About Us on a growth path now sustainable? "This latest version of the Government on the economy means the worst is behind us?" The index leading economic indicators we say the same thing?
Well, look at the reports and see where the growth is coming. Perhaps what we give some answers.
For starters, growth in Q3 has since been revised downward to 2.8%. And the following table shows the contribution to growth from the various sources of our economy.
The contributions to growth were:
Thank you for this data table is a bit busy, but it is important to understand the true nature of what some call a recovery. He noted the major contribution economic growth in the third quarter was restocking inventory. In my opinion, this will be the difference in growth is not empty. It is simply the inverse of the stocks that we have seen massive and aggressive in the fourth quarter of 2008.
So if we take the storage growth rate slips to 1.9%. We will also remove defense spending and health care that are not growth factors. After all, support our troops in Iraq, Afghanistan and around the world should not be regarded as economic growth. And more health for an aging population should not be regarded as a new growth.
If we eliminate the defense and health care, growth was reduced only represent only 1.1%. But growth remains is the sale of vehicles. Let us now look deeper into this subject.
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