Wednesday, July 30, 2014

U.S. Economy - "Animal Spirits" Poking Out

Keynesian "animal spirits" have tested the outdoors.

Investment in consumer spending and rebuilding inventory overcame the growth in imports to show a 4 percent annualized real growth in U.S. GDP in the second quarter ("advance" estimate).

The growth was significantly above expectations of a 3 percent increase.

This growth occurred even after a revision of the first-quarter estimate that reduced the decline in from an annualized rate of 2.9 percent to 2.1 percent.