US GDP growth proves economy 'still robust' in Q2: Economist

The US economy grew faster than expected in the second quarter as GDP (gross domestic product) increased at a 2.8% annual pace. BlackRock global chief Investment Strategist Wei Li and EY chief economist Greg Daco join Catalysts to break down the state of the economy and what this economic expansion means for potential interest rate cuts from the Federal Reserve.
"There was not a major slowdown in terms of economic activity. We still had consumers spending, although they were exercising a little bit more discretion in a high-priced, high-interest-rate environment. We still had businesses investing, especially in high growth areas and growth areas that also drive stronger productivity momentum. So those were the good signs in this GDP report," Daco says of the print.
He explains that there are signs of a labor market cooldown, which in turn slows disposable income growth and ultimately causes consumers to be more cautious about their spending. He believes that July would have been an opportune time for an interest rate cut as the US saw "disinflation working its way through the economy."
Li notes that information-processing-equipment spend in this GDP print grew as the AI race continues to play out. She believes there is more room for the AI trend to grow, however, she would caution investors away from an "automatic buy-the-dip strategy." She believes that second quarter earnings will be critical, and in the long term, "fundamentals will prevail."
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[@bobmonster111]

this will end up bad. paying higher prices for same products will eventually make wallets empty to a point where revival of consumer sentiment can go beyond fed's power....this will result in more printing

[@juanrestrepo302]

Way to Go! Strong Economy

[@Sparta1993]

See how they mock you? Worst economy ever in America. Life is unaffordable. Inflation and spending made us poor. We see through you

[@chessdad182]

thanks Biden

[@wanderingquestions7501]

So we’re led to believe the US economy is so strong at an annualized GDP of 2.8% while we are told how weak China’s economy is when it’s Q1 annualized GDP was 5.3%. From JP Morgan 5/17/24, “….2024 has been a better year for China compared to the last three. First quarter GDP came in above expectations at 5.3% year over year”. Which economy is actually robust?

[@lokesh303101]

Yes!

[@НикитаФадеев-ф3ь]

There will be this awareness that we need to rethink how the money system works, we need to get out of a debt-based economy. We cannot allow a small power elite to create money and reap the profit from lending it with interest. This is something that the state needs to take on, and the state needs to be in control of the money system so that only the state benefits and thereby the people benefit. If the state makes money off of money, people do not have to pay so much taxes. It needs to be seen that the only institution in society that has a right to make money off of money is the state. The state, of course, cannot go into the many forms of schemes that the capitalists have come up with in order to manipulate the economy because the state has no interest in manipulating the economy. It simply has an interest in creating a money system that allows for the greatest amount of creativity, movability of the money, the greatest ability to finance new businesses. This will promote a growth in the economy, and the more the economy grows, the more it is in the interest of all of the people and also, of course, in the interest of the state. These are very, very dramatic shifts compared to what you have today but they are not so unrealistic that they are so far off. It can come to that point where there is such an awareness of the existence of power elites that they will very quickly be put out of commission by the democratic nations. There will be either a raised awareness of how the power elites work and how anti-democratic it is, or there would be an awareness that if we do not reform the money system, then our economies, our debt-based economies, are going to collapse. The debt has reached such proportions that no country can pay it back and it is, in fact, in no way democratic, in no way in accordance with the democratic ideals, that the population of an entire country are enslaved financially so that for the next many decades a majority of their resources will go to pay back the interest to a small power elite. How is this democracy? How is this freedom? How is this allowable in a democratic nation, in a democratic world?

[@SigFigNewton]

GDP growth same as price growth? So… no growth

[@rafaelcoelho6966]

@@SigFigNewton the gdp growth figure they show already accounts for inflation

[@SigFigNewton]

@@rafaelcoelho6966 ah, thanks! How do I know whether gdp growth numbers i see are inflation adjusted?

[@linzierogers3537]

People are going to believe what they want to believe. When I shop I can see some prices have gone down. If you're suffering financially it doesn't feel that way. I know that feeling 0:14

[@MissyElliotness]

No it is not a good economy

[@nicolewolfeceo8]

Want too collab/partner 😎🆒💯