The 2020 Mid-Year Economic Update_long

Day: May 29, 2008

Preliminary Estimates: U.S. GDP Growth at 0.9% in 1Q

Real gross domestic product -- the output of goods and services produced by labor and property in the U.S. -increased at an annual rate of 0.9 percent in the first quarter of 2008, according to preliminary estimates released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 0.6 percent.
 
The GDP estimates released today are based on more complete source data than were available for the advance estimates issued last month. In the advance estimates, the increase in real GDP was 0.6 percent.
 
The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE) for services, exports of goods and services, federal government spending, and private inventory investment that were ...

GDP Growth ‘Muddling Along Above Zero’

U.S. Gross Domestic Product preliminary estimates came out today (Thursday), and they are higher than previously thought -0.9% growth in the first quarter as compared with previously estimated 0.6% growth for the quarter. (The government releases three estimates for each quarter -Advance, Preliminary, and Final.)
 
A Q&A feature by Knowledge(at)Wharton (a service of the Wharton School at the University of Pennsylvania) recently featured finance professor Jeremy Siegel and management professor Witold Henisz talking oil prices and what's next for the U.S. economy. Here's what they had to say about their prognosis for the economy as a whole:
 
Siegel: I just did some kind of 'back of the ...

New Orders for Manufactured Goods Fall in April

New Orders
New orders for manufactured durable goods in April decreased $1.0 billion or 0.5% to $214.4 billion, the U.S. Census Bureau announced. This was the third decrease in four months and followed a 0.3% March decrease. Excluding transportation, new orders increased 2.5%. Excluding defense, new orders decreased 0.3%.
 
Transportation equipment, down three of the last four months, had the largest decrease, $4.8 billion or 8.0% to $56.1 billion.
 
Shipments
Shipments of manufactured durable goods in April, up following two consecutive monthly decreases, increased $2.5 billion or 1.2% to $212.2 billion. This followed a 0.9% March decrease. Computers and electronic products, up following two consecutive monthly decreases, had the largest ...

MAPI China Trade Analysis: Surplus for Manufactures Surges

China's trade surplus declined by 8%, from $62.9 billion to $58 billion, from January-April 2008 compared year-over-year with 2007, the result of higher oil prices and other crude materials imports, yet the surplus for manufactures surged by 34%, according to a Manufacturers Alliance/MAPI analysis of Chinese trade data for the first four months of the year. China's worldwide trade surplus in manufactured goods is on track to rise from $444 billion in 2007 to $586 billion in 2008.
 
Ernest H. Preeg, MAPI Senior Fellow in Trade and Productivity and author of India and China:  An Advanced Technology Race and How the U.S. Should Respond, also notes that the Chinese surplus was down by 2% with the U.S. but rose by 26% ...