Crazy GDP Economic Number … Friday

GDP (Gross Domestic Production) is a measure of output of the USA and is released on a quarterly basis. GDP gives us and idea of how the economy is doing.

First Quarter 2014 GDP (-2.9%) for the USA

With two quarters of ANY negative GDP being defined as a recession, the first  quarter of this year’s negative 2.9% stunned us as well as many other investor likes…. Here are the issues:

• Clearly the harsh winter caused much of this
• Are we missing something?
• For the conspiracy theorists, did the adjustments in calculations cause this?
• It’s a fluke !

Far right bar hanging very low …. bounce back next quarter?

Time will tell !!

Ahhh….but today is a Friday heading into a weekend. Do not forget to spend time with those special in your life…. We are almost half way through 2014 !!!

Have a Great Friday and a super weekend !

John A. Kvale CFA, CFP