Thursday, April 30, 2009

Government Spending DOWN, personal consumption UP

Q1-2009 government expenditure was down and personal consumption was up!!!
this is not at all how the mainstream view sees the economy


  • Real GDP growth contracted 6.1% in Q1 2009 after contracting 6.3% in Q4 2008. Exports, inventories, government expenditure and investment had a negative contribution to GDP growth whereas consumption had a positive contribution
  • Real final sales (GDP - change in private inventories) decreased 3.4%. Private inventories subtracted 2.79% from GDP growth (the most since records began in 1947). Real Personal consumption rose 2.2% (the most in 2 years); private investment fell 51.8% led by a 38% decline in both residential and business investments; government expenditure fell 3.9% due to decline in defense and state and local government spending. Exports fell 30% but imports fell at a much faster pace at 34.1%. This led to a positive GDP contribution of net exports of 1.99%

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