The Obama Recovery: GDP declines 1 percent, better than expected, Jobless claims decrease

[jefferson_dem]

GDP declines 1 percent, better than expected
Latest figures more evidence that the recession is drawing to a close

The Associated Press
updated 8:40 a.m. ET, Thurs., Aug 27, 2009

WASHINGTON - The government says the economy shrank at an annual rate of 1 percent in the spring, a better-than-expected showing and more evidence that the recession is drawing to a close.

The Commerce Department's estimate for the change in the gross domestic product was unchanged from the initial figure it released last month. The drop, while representing a record fourth consecutive decline, was far smaller than the previous two quarters. It also was stronger than the 1.5 percent decline that private economists expected.

The new report found that businesses slashed their inventories more than first reported and cut back more sharply on investment in new plants and equipment. But those reductions were offset by revisions that showed smaller dips in consumer spending, exports and housing construction.

http://www.msnbc.msn.com/id/32579465/ns/business-stocks_and_economy?ocid=twitter

Initial Jobless Claims in U.S. Decreased Last Week (Update1)
By Shobhana Chandra

Aug. 27 (Bloomberg) -- Fewer Americans filed claims for jobless benefits last week, another sign the economy is pulling out of the worst recession since the 1930s.

Applications fell by 10,000 to 570,000, a higher level than forecast, in the week ended Aug. 22 from a revised 580,000 the week before, Labor Department data showed today in Washington. The total number of people collecting unemployment insurance fell to the lowest level since April.

Companies’ staff cuts are easing as government stimulus measures help stabilize the housing and manufacturing industries. At the same time, a rebound in hiring will take longer to occur, restraining the consumer spending that accounts for about 70 percent of the economy.

“The labor market is improving,” David Sloan, a senior economist at 4Cast Inc. in New York, said before the report. “The economy is returning to growth, but employment and consumer spending are going to remain weak for some time.”

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http://www.bloomberg.com/apps/news?pid=20601068&sid=aaXeiuWvQySc

[MoJoWorkin]

1. Do I actually see an admission that government stimulus measures helped?

WOW---better frame this article. I bet it is sticking in their craw to have to say it.

[TomCADem]

2. I Don't See Any Credible Economist Arguing That The Stimulus Is Not Helping...

Most of the arguments are on idealogical grounds or that some day in the future, we will need to reduce the deficit.

[paulk]

3. the arguments I've seen are that the stimulus wasn't big enough

and because of that the recovery is a jobless one, which doesn't bode well for the long term.

Personally, I'm not to0 excited by stock market gains or numbers that tell me the recession is "ending".

Jobs are what matters.

[avaistheone1]

4. A recovery without jobs - is not a recovery I can believe in.

How are people suppose to pay their bills with rocks and pebbles? How do people pay for the mortgage, their utilities, food, health insurance etc. without jobs?

[jasi2006]

5. I only see the MSM refuses to gi ve as much time to this news as it did

to the bailouts and MJ.

[taught_me_patience]

7. You're not watching CNBC

they're doing a 24hr circle jerk about "green shoots".

[kwolf68]

6. GDP declines only 1 percent

Then it is clear we need more car crashes, more environmental disasters, more pollution, more medical maladies.

Heh Heh...