The Commerce Department released its third estimate of first quarter GDP and once again it’s lower. Apparently, consumers didn’t spend as much in the quarter as previously thought and the GDP rose 2.7 percent, instead of 3 percent.
We all wish the economy was recovering faster, but at least it’s growing and continued growth looks likely.
On Thursday, government reports showed that businesses have been spending more on machinery, computers, metals and other goods in the second quarter. That is a strong indicator that businesses are positive about the coming months, will boost production and may finally start hiring later in the year.
Another good sign: The average interest rate for a 30-year fixed-rate mortgage fell to the lowest point on record — 4.69 percent. That hopefully will boost home sales, which dropped in May when the end of the federal tax break for homebuyers.
However, interest rates have been low for months and the housing market hasn’t really responded.
And this week brought the latest word from the big brains at the Federal Reserve. And that word was “fragile.”
The Fed expects the economy to keep growing, but the board’s mood was less upbeat than before. Its outlook is tempered by a sluggish domestic labor market and concern about Europe’s financial crisis.
Whew! What a week. I need a vacation.