Economic Growth… Underwhelms
The numbers are out… and it turns out the economy isn’t exactly knocking it out of the park. (The Gen Y’ers out there would probably call it “Meh.”). Reports out today are that the economy grew 2.5% last quarter.
What’s it mean?
Well, that’s a fine question. What’s maybe lost in the numbers when focusing on last quarter is that over the last 4 quarters growth has averaged 1.8%. So from that perspective, 2.5% is pretty good, right?
Also buried is that consumer spending is driving a good portion of that growth – up 3.2% on the quarter. But… that comes at a time when discretionary earnings are on a downswing. (We’re not fancy economists, but that seems to imply that savings are the portion being squeezed here?)
The Status Quo
Overall none of this comes as a huge shock. Our experience “in the trenches” is that most people and companies are getting along just fine. Not a lot of surprising growth – and not a lot of stories of whoa. Maybe it’s not that bad that we aren’t in the go-go times of the last 90’s and mid-2000s?