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Thread: Frigid winter takes toll as US GDP contracts for first time in 3 years

  1. #1

    Default Frigid winter takes toll as US GDP contracts for first time in 3 years

    The U.S. economy contracted in the first quarter for the first time in three years as it buckled under the weight of a severe winter, but there are signs activity has since rebounded.

    The Commerce Department on Thursday revised down its growth estimate to show gross domestic product shrinking at a 1.0 annual rate.

    It was the worst performance since the first quarter of 2011 and reflected a far slower pace of inventory accumulation and a bigger than previously estimated trade deficit.


    http://www.cnbc.com/id/101713801

  2. #2

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    Quote Originally Posted by Silver and Gold View Post
    The U.S. economy contracted in the first quarter for the first time in three years as it buckled under the weight of a severe winter, but there are signs activity has since rebounded.

    The Commerce Department on Thursday revised down its growth estimate to show gross domestic product shrinking at a 1.0 annual rate.

    It was the worst performance since the first quarter of 2011 and reflected a far slower pace of inventory accumulation and a bigger than previously estimated trade deficit.


    http://www.cnbc.com/id/101713801

    And the price of gold seems unaffected... amazing!

    .

  3. #3

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    Short-term weather does not destroy demand, but often times delays it. While Q1 was weak, all signals are pointing to a robust Q2 as demand shifts. Don't confuse economic noise with indication.
    The answers are in the data

  4. #4

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    Perhaps they don't realize winter happens every year.... Or maybe the obama economy sucks.
    Now there's no more oak oppression
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    Now the trees are all kept equal
    By hatchet, axe and saw.

    I will not comply.

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    and leave you the hell alone!

  5. #5

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    Quote Originally Posted by t00nces2 View Post
    Perhaps they don't realize winter happens every year.... Or maybe the obama economy sucks.
    lol... I'll go with the latter.

    .

  6. #6

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    Still wondering how the weather came into play when they say online shopping is growing.

  7. #7

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    Quote Originally Posted by Silver and Gold View Post
    Still wondering how the weather came into play when they say online shopping is growing.
    Maybe they're counting shipping delays





    I suggest our economy's a lot worse than what's being reported
    Honor for US, Justice for Our Children! Now!

  8. #8

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    Quote Originally Posted by Silver and Gold View Post
    Still wondering how the weather came into play when they say online shopping is growing.
    Growth is relative. Solar is growing as well, but still represents a fraction of overall power supply. Similarly if 75% of shopping is done in person and 25% is done online, weather can still have serious impacts on sales. Weather can also delay shipments causing increases in costs to retailers and shipping companies. Delays in shipping can also impact the end user as returns, shipment of capital goods, and new products/items are delayed.
    The answers are in the data

  9. #9

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    Quote Originally Posted by Ryanferr View Post
    Growth is relative. Solar is growing as well, but still represents a fraction of overall power supply. Similarly if 75% of shopping is done in person and 25% is done online, weather can still have serious impacts on sales. Weather can also delay shipments causing increases in costs to retailers and shipping companies. Delays in shipping can also impact the end user as returns, shipment of capital goods, and new products/items are delayed.
    We were posting at the same time...

    Well, there you go
    Honor for US, Justice for Our Children! Now!

  10. #10

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    Perhaps Obamanomics is causing global economic cooling.
    Legal Disclaimer: I am not a doctor, nor do I play one on TV.

    "It's tough to make predictions, especially about the future." -- Yogi Berra
    A variant of this has also been attributed to physicist Niels Bohr, and others.

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