Meanwhile, back in the real world

[Valin]

Power Line: Paul Mirengoff

9/27/12

 

.a recession may well be looming. GDP growth for the second quarter of this year has been revised down to 1.25 percent. That’s the slowest pace since the third quarter of 2011.

 

According to Reuters, output was revised down to reflect weaker rates of consumer and business spending than previously estimated. Outlays on residential construction export growth were also not as robust as had been previously estimated.

 

(Snip)

 

"I’ve frequently written about research from the Fed which finds that since 1947, when two-quarter annualized real GDP growth falls below 2%, recession follows within a year 48% of the time. And when year-over-year real GDP growth falls below 2%, recession follows within a year 70% of the time. ."

James Pethokoukis

(Snip)