Government Spending Pads GDP. Existing Home Sales up.

GDP (3rdQ2012) – Real GDP – Quarter/Quarter  +3.1% – GDP price index – Quarter/Quarter  +2.7% – Final sales of domestic goods was +2.4% The previous iteration of 3rdQ2012 GDP was estimated at +2.7%.  2ndQ2012 had been +1.7%.  The final sales of domestic goods is the best measure of economic health becaue it is all about

Deceptive Headline GDP. Initial Jobless Still too High.

GDP (3rdQ2012 – second estimate) – GDP was revised from +2.0% to +2.7% – The GDP deflator (a measure of inflation) was 2.7%. The increase looks good until one looks inside.  According to BEA, GDP was made up of the following components: – real personal consumption was +1.4% compared with 1.5% in 2ndQ – Durable

GDP Growth Remains Weak.

GDP (3rdQ2012) – Inflation Adjusted (real) GDP quarter/quarter was +2.0%. Note that this was subsequent to adjusting the previous quarter’s growth down to 1.3%. This is weak considering how far we are into a recovery. Later today I will be publishing here a piece by Rick Davis of Consumer Metric Institute which points out that BEA

Initial Jobless down. GDP, Durable Goods, and Pending Home Sales Weak.

Jobs Initial Jobless Claims (week ended 9/22/2012) – Initial Claims 359,000.  Previous revised up to 385,000 – 4-week Moving Average 374,000.  Previous was 378,500. This would be good news except for the following. GDP (2ndQ2012)   – 2ndQ2012 GDP was revised downward from +1.7% to +1.3%.  There are two distinct issues:  1) what is happening