.

GDP Report Doesn't Completely Disappoint

Though the headlines surrounding the negative GDP number have seemed frightening, the report also had some positive points.

0.1%: Shrinkage of US economy in Q4 2012

The United States economy contracted by 0.1% in the 4th quarter of 2012, the first negative GDP reading in over three years. The news surprised many economists, who had predicted that the US would grow around 1%. Though the headlines surrounding the negative GDP number have seemed frightening, the report also had some positive points. Personal consumption actually rose and business investment was healthy.

The contraction was essentially a result of two factors: large drops in both government spending and inventories. The latter was hardly a surprise since much of the third quarter's jump in growth was attributed to a buildup in inventories. The bottom line: the GDP report was disappointing, but we would still expect growth to be positive in the first quarter of this year.

Source: BlackRock, February 2013

http://www2.blackrock.com/

Prepared by BlackRock

Delivered courtesy Joel W. Grams, CRPC®, CLTC,

Registered Representative, Financial Planner, 212 Capital Group

38 Main Street Suite 360, Westlake Ohio 44145

(440) 835-4501 Ext 17, jgrams@212capitalgroup.com

The foregoing discussion is general in nature and not intended as specific advice.
New England Financial nor its representatives are engaged in rendering tax,
accounting or legal advice. A qualified professional should be consulted regarding the effect of such considerations on the matters covered in this publication.

 

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