Macroeconomic Advisers now forecasting Q1 GDP at +2.0 and Q2 at +2.4

As of Thursday, May 10, 2012, Macroeconomic Advisers (MA) is now forecasting that annualized real GDP growth for Q1 will come in at +2.0% and that Q2 will come in at +2.4%. Although the economy is somewhat sluggish and very uneven, there is still no sign of any imminent recession.

 

Q1 is coming in weaker than people had expected a month ago, but the fact that Q2 is projected to move modestly higher is a modestly positive sign.

 

The overall problem with the economy is that some sectors, such as local and state government are weak and even still declining even as other sectors are doing reasonably well.

-- Jack Krupansky