Growth weaker than hoped; economy shrinks in Q4

[uppityperson]

Source: AP via Seattle Times

The country didn't get the energetic rebound in economic growth hoped for from the government's tax rebates in the second quarter, and the economy jolted into reverse at the end of 2007, raising new recession fears.

The Commerce Department reported Thursday that gross domestic product, or GDP, increased at an annual rate of 1.9 percent in the April-to-June period. That marked an improvement over the feeble 0.9 percent growth logged in the first quarter of this year and the outright contraction in the economy during the final quarter of last year.

Still, the second-quarter rebound wasn't as robust as economists had hoped; they were forecasting growth at a 2.4 percent pace. The pickup, while welcome, isn't likely to be seen as a signal that the fragile economy is growing healthier. There are fears that as the bracing tonic of the tax rebates fades, the economy could be in for another rough patch later this year. On Wall Street, the Dow Jones industrials were off nearly 40 points in morning trading following two days of gains.

The health of the economy is the top concern of the public - and by extension politicians including candidates vying for the White House. Of the latest GDP news, President Bush said: "It's not as good as we'd like it to be, but I want to remind you a few months ago there were predictions that the economy would shrink this quarter," he said....(more)

Read more: http://seattletimes.nwsource.com/html/businesstechnology/2008070746_apeconomy.html

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So the "economic stimulus package" failed to pull us out? Wow. What a surprise. :sarcasm:

[greyghost]

1. I'm shocked! Shocked...

:sarcasm:

[uppityperson]

2. I know. The problem is we're still waiting on ours. Once that happens, all will be fine.

Waiting on IRS to clear up an error, so we wait. Once it gets cleared up, I am sure we can make the economy boom.

[Javaman]

3. Followed directly by the thread: Rising Oil Prices Swell Profits at Exxon and Shell

I need a drink. A large one. mostly if not all alcohol.