Tip:
Highlight text to annotate it
X
{\rtf1\ansi\ansicpg1252\cocoartf1138\cocoasubrtf320 {\fonttbl\f0\fswiss\fcharset0 ArialMT;}
{\colortbl;\red255\green255\blue255;\red26\green26\blue26;\red0\green0\blue239;} \margl1440\margr1440\vieww10800\viewh8400\viewkind0
\deftab720 \pard\pardeftab720\sa240
\f0\fs24 \cf2 (Image Source: {\field{\*\fldinst{HYPERLINK "http://www.whitehouse.gov/sites/default/files/imagecache/embedded_img_full/image/image_file/gdp-blog-chart.jpg"}}{\fldrslt
\cf3 \ul \ulc3 whitehouse.gov}})\ \
\pard\pardeftab720\sa240
\b \cf2 BY MATTHEW PICHT \b0 \
\b ANCHOR LAUREN GORES \b0 \
\uc0\u8232 Are consumers chilling or warming on the economy? \'a0The U.S. Department of
Commerce reported on Friday that U.S. gross domestic product dropped from 2 percent growth
to 1.5 percent growth over the second quarter. Analyst Neil Dutta tells {\field{\*\fldinst{HYPERLINK
"http://www.bloomberg.com/video/dutta-u-s-gdp-report-was-an-economist-s-dream-bpXGSqvKR_qFAUsB8VSpPQ.html"}}{\fldrslt \cf3 \ul \ulc3 Bloomberg}}, this report has
some data for everyone to cling to.\uc0\u8232 \u8232
\b \'93The bulls will look at it and say, you know, CAPX is improving, the housing market\'92s
healing. The bears will look at it and say, you look at real final sales, you know, GPD
net of inventory is only 1.2%\'94 \b0 \uc0\u8232 \u8232 Although 1.5 percent
growth is significantly below healthy economic levels, the decline was largely in line with
economists projections. {\field{\*\fldinst{HYPERLINK "http://www.foxbusiness.com/markets/2012/07/27/stock-futures-tick-up-ahead-gdp-data/?test=mcheck"}}{\fldrslt
\cf3 \ul \ulc3 Fox Business\'92s}} Stuart Varney says this report is a mixed bag to
those holding out hope for federal intervention.\uc0\u8232 \u8232
\b \'93It\'92s not as bad a report as some were expecting. On the other hand, it\'92s
not so bad that Ben Bernanke will be tempted to chuck some money into the economy immediately.\'94
\b0 \uc0\u8232 \u8232 The report also highlights a more cautious business environment: business
investment slowed by 2.2 percent over the second quarter. Economic advisor Joel Naroff
tells {\field{\*\fldinst{HYPERLINK "http://www.cnbc.com/id/48352210"}}{\fldrslt \cf3 \ul \ulc3 CNBC}}, uncertainty about the
future of fiscal policy appears to be hindering market confidence.\uc0\u8232 \u8232
\b \'93Do you really get bulled up when you don\'92t know what Congress is going to do
in December or January? I think businesses have to be a bit cautious. The fact that they\'92re
spending at a reasonable pace is good: we\'92d like to see them spend a whole lot more.\'94
\b0 \uc0\u8232 \u8232 In the official press release, the {\field{\*\fldinst{HYPERLINK
"http://www.whitehouse.gov/blog/2012/07/27/advance-estimate-gdp-second-quarter-2012-and-annual-revision"}}{\fldrslt \cf3 \ul \ulc3 White House\'92s}} chief economic
adviser Alan Kruger characterized today's report as \'9312 months of steady growth,\'94
saying the U.S. economy was moving \'93in the right direction,\'94 but that \'93additional
growth was needed to replace jobs lost in the deep recession.\'94\uc0\u8232 \u8232 That
press release incensed {\field{\*\fldinst{HYPERLINK "http://money.cnn.com/2012/07/27/news/economy/us-gdp/index.htm"}}{\fldrslt
\cf3 \ul \ulc3 CNN\'92s}} Ali Velshi, who accused Washington of refusing to face facts.\uc0\u8232
\
\b \'93Call a spade a spade. The economy in the United States is slowing down, and if
it slows down enough, it will send the world into a recession. This kind of nonsense is
a waste of paper.\'94 \b0 \uc0\u8232 \
In addition to the most recent GDP numbers, the Commerce Department\'92s report also revised
GDP growth figures for 2007-2011. The new numbers suggest that the initial 2009 recovery
was not as strong, and the preceding recession was not quite as severe, as previous estimates
have shown.\ }