4thQ2015 GDP.

4thQ2015 GDP (third estimate)

– Real GDP quarter/quarter seasonally adjusted, annualized  +1.39%. Previous estimate was +1.0%.  Prior quarter was  +1.99%
– GDP price index quarter/quarter seasonally adjusted, annualized  +0.9%.  Prior quarter was +0.9%.
– Real Final Sales of Domestic Product +1.60%. Previous was +2.70%.

A detailed analysis will be in my newsletter on Monday.  Two brief points:  1) Contraction of growth from an already low level is not good 2) by comparison with the economies of other major developed nations +1.39% GDP growth is good. The fact is that the world economy is hurting.

My take is that we are doing about as well as we can at present but that this slow GDP growth means continued large deficits and an ever increasing National Debt. The single most important problem the world economy faces is debt. Here in the U.S. this evidences as government debt, corporate debt and personal debt.  The U.S. also has the enormous burden of underfunding of Social Security and Medicare which together are 2-3 times the size of the $19 trillion National Debt. Debt is the residue of money spent in the past which cannot be spent at present or in the future.

 
Corporate Profits 4thQ2015

– After-tax Profits year/year -3.6%. Previous was +1.3%