GDP was up in the second quarter, but our economy is still not exactly a house afire. Preliminary results indicate an increase of 2.3 percent:
The BEA explains where last quarter’s growth came from:
The acceleration in real GDP growth in the second quarter reflected an upturn in exports, an acceleration in PCE, a deceleration in imports, and an upturn in state and local government spending that were partly offset by downturns in private inventory investment, in nonresidential fixed investment, and in federal government spending and a deceleration in residential fixed investment….Real personal consumption expenditures increased 2.9 percent in the second quarter, compared with an increase of 1.8 percent in the first.
Really, the chart tells the whole story. As you can see, 2.3 percent growth is about….average since the recession ended. Not great, not horrible. Every time we manage to get into third gear for a little while, we hit a bump and end up back in second. It’s now been eight years since the economy imploded, and we’re still just muddling along. It’s not clear what it will take to improve things.