On today’s show we are unpacking the shocking GDP announcement that was published at 8:30 on Wednesday morning July 30. The market expected a 2.3% growth rate and the actual published number blew past the expectation with a 3% annualized growth rate in the second quarter. This is in stark contrast to the negative 0.5% growth rate in the first quarter.
So the obvious question is how did the economy swing from economic contraction in the first quarter to 3% growth in the second quarter?
On today’s show we are going to look at the underlying components of the GDP calculation to get an understand what is happening.
There are only a handful of variables, five of them in fact that move the needle. There is consumption, investment, inventory, imports and exports.
Let’s look at each one of these factors and determine the impact of each one on the GDP calculation.
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