"The GDP numbers are not different enough to change the view on the fourth quarter," said Subodh Kumar, an investment strategist based in Toronto. "Now the market is wondering how steady the growth will be after the bounce back."
Very little change from the first report. The US economy remains extremely dependent on consumption for growth. Please review the GDP breakdown (advanced report) for an illustration of unbalanced nature of economic growth. How long can consumption support the economy in the face of mounting job losses and restricted access to credit? Despite opinions to the contrary, the government's capacity to absorb the decline in personal consumption is not infinite.
Source: reuters.com
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