Quick GDP Reaction
An increase from 0.6% to 0.7% isn’t big news but the composition of that growth looks a little bit better than first thought. Overall this release looks like modest good news.
The net trade performance has picked up and growth seems a little less reliant on consumption than it did before this data.
On the other hand business investment remains around 25% below pre-recession levels.
Three charts (all from today’s releases) sum up how far we still have to go, both to regain the 2008 level of GDP and to successfully rebalance:
Despite better numbers this remains a weak recovery that has come three years later than expected.