GDP is Revised Upward, Boosted by Defense

[QuietStorm]

snip

WASHINGTON (Reuters) - Soaring defense spending pushed U.S. economic growth in the second quarter to a faster pace than previously thought, the government said on Thursday in a report that was the latest in a string of data indicating the economy is on the mend.

Gross domestic product, or GDP, grew a revised 3.1 percent in the second three months of the year, the Commerce Department said -- a figure broadly in line with Wall Street expectations for a 3.0 percent gain. That was up from the 2.4 percent rise estimated a month ago and followed anemic 1.4 percent growth in each of the two prior quarters.

It was the fastest expansion since the third quarter of last year and is likely to bolster hopes for strong growth in the current quarter.

"The GDP numbers were very favorable and showed strong momentum and growth in some key areas," said Paul Ferley, assistant chief economist at Bank of Montreal.

ah yes the profits of war.
http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=3350989&src=eDialog/GetContent§ion=news

[Liberal Veteran]

1. Not to put too fine a point on it, but....

If the only reason the economy is on the mend is because of soaring defense spending, then the economy isn't really on the mend. That kind of spending cannot be maintained indefinitely.

[ozone_man]

3. Personal consumption is a large part of this (50% or more).

Perhaps even larger in the revised numbers. But we have been living off refinancing (cash out) for a few years now and this will dry up soon. Probably in time for election or maybe just after. Look out below when this happens.

[moondust]

2. "GDP is Revised Upward, Boosted by Payments to Halliburton."

Halliburton Deals Greater than Thought

[QuietStorm]

4. 1 % is making a killing on this war.

carlyle is probably raking it in.