The Economists Get it Wrong Once Again
The U.S. economy grew at a +3.3% real (after-inflation) annual pace in the second quarter of 2008, much stronger than previously expected by economists. The initial estimate, provided by the Commerce Department in July, was +1.9%, and economists surveyed by MarketWatch had expected a revision to +2.7% growth. The strong upward revision in GDP growth was largely due to booming exports, which rose 13.2%.
MarketWatch, published by The Wall Street Journal, reports that economists expect growth to slip to +2% in the third quarter and even lower for the final three months of 2008. Time will tell if the "experts" are once again too pessimistic. Click here for the news report from MarketWatch.