The revised numbers for the third quarter of 2007 show strong growth in the GDP, 4.9%. Where did it come from? The chart below shows how the economy performed. Notice consumption and exports are the two leading areas of growth. Housing and imports are contracting.
2 comments:
December 5, 2007 at 3:22 PM
The consumption figure is surprising given the low and falling savings and the pulling back in home values. If memory serves, a lot of the "spending cash" of the last few years has been from home appreciation and refinancing activity. Does the continuing increase in consumption call that theory into question?
December 16, 2007 at 11:09 PM
I think it is always speculation about how much of their equity people are spending. But even if true, it may not matter. Consumption never really slows down, even during a recession.
Post a Comment