Looking at the details from the GDP report released Thursday morning underscores how the economy could be stronger than the surprise miss suggests. There is that one key weakness that caused the miss, though: inventories.Consumers make up by far the biggest part of the US economy. Americans spending money on goods and services accounted for 69% of current-dollar GDP between April and June.
Looking at nominal, or non-inflation-adjusted, numbers, you can see the rapid acceleration in consumer spending over the last few quarters, now well above pre-pandemic highs:hot vax summer A look at the total non-inflation-adjusted levels on restaurant and hotel spending shows that this category is growing even faster than consumption overall, showing how one of the sectors hardest hit by the pandemic and lockdowns is very quickly rebounding:Businesses are investing, and it should lead to more productivity
Similarly, investment in intellectual property rose at a 10.7% annual rate, above the pre-pandemic trend of 7.1%.
Biden is failing bot nice spin….