Friday, April 26, 2013

GDP Comes in Below Expectations

GDP was just reported and the advanced estimate (read fantasy number subject to change) came in at an annualized rate of 2.5% vs. expectations for 3% growth. Annual growth was 1.8%, better than the 1.7% change in the fourth quarter last year but not by much. As I stated in my twitter account (here), I was taking the under in the over/under bet on where GDP would come out. There is just too much evidence (low ISM, decelerating employment figures, low GDP growth itself, etc.) to suggest that growth in the economy accelerated.

I think Kyle Bass put it well in the following tweet......

Growth slowing. Those that are long based on accelerating growth are simply wrong - it was all policy/liquidity induced.

Regardless, the market's seem unfazed by the report, with futures little changed before and after 8:30 a.m.


No comments:

Post a Comment