“Davidson” submits:
Real GDP was better than expected. But, if one looks at the trends then one sees decent but less than historical RGDP.
Real GDP is composed of private and public spending. Private economy has been trending consistently at 3.33% as government shrunk at 2.13%. This leaves Total Real GDP at 2.29% Now that govt spending is rising, it makes total Real GDP look better.
NOTE: There has been no change in Real GDP trend since 2009. It is just now government is not subtracting from the total Real GDP. We are still missing Real GDP from housing, commercial construction and banking. I fully expect these important sectors to improve in the next several years and for Total Real GDP to return to or exceed 3%. If one looks at Real GDP trends, we may be on the verge of breaking to higher rate of growth.
