GDP Numbers Don’t Always Tell The Story…

Posted By on October 28, 2011

Yesterday, the U.S. GDP for the third quarter of 2011 unexpectedly surprised to the upside at +2.5% vs +.7% in the second quarter….

You’re not alone wondering how it was possible for Q three GDP to post such a substantial improvement driven by mostly a surge in Personal Consumption expenditures?   Well, so do we! 

Looks to us like it was at the expense of savings, which was 5.3% in June but now sits at 3.6% as of September…that’s our best guess.

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