Friday, July 29, 2016

The Boom in Europe Continues

The Eurozone clocked in at 0.3 percent GDP in the second quarter (that's 0.3 percent absolute growth over first quarter).  For the umpteenth time, forecasters had been overly optimistic.

“Second-quarter growth is disappointing given the forecasts,” French Finance Minister Michel Sapin said, according to the Wall Street Journal.

It's always disappointing, but never unusual.  Both the US and the Eurozone no longer have any economic growth worth announcing, even through economists continue and will continue to forecast 3+ percent growth. It just never, ever happens.  Instead, we get post-mortem comments like that at Michel Sapin above.

US GDP for the second quarter is soon to be released.  Look for a big number, near or above 3 percent, and then look for that number to be later revised down to reflect the absymal reality.  But, for now, the Democratic Party needs some good news.  Look for the Commerce Department to provide temporary relief by bragging about an economy that is sorely in need of some pep, instead of a pep rally.

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