GDP Increases At a Smart 4.0% Rate in Second Quarter

Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.


Here’s something that counts as good news: GDP increased in the second quarter at an annual rate of 4.0 percent. At the same time, the first quarter numbers were revised to a slightly less horrible -2.1 percent growth rate. This means, roughly speaking, that the economy has grown about 1.9 percent over the first half of the year.

Now, this is obviously nothing to write home about. A growth rate of 1 percent per quarter is pretty anemic. Still, it’s better than expectations after the terrible Q1 numbers, and the rebound in Q2 suggests there really was some make-up growth. A fair amount of this growth came from inventory build-up, which is normally a reason for caution, but after two previous quarters of inventory decline it’s probably not the warning sign it might otherwise be.

All in all, this is decent news. It’s still not possible to say that the economy is roaring along or anything, but the Q1 number now looks like it really was an anomaly. Slowly and sluggishly, the economy is continuing to recover for the ~95 percent of us who haven’t been unemployed for months or who haven’t given up and exited the labor force entirely. For those people, economic growth is still slow enough to leave them behind. One good quarter is nice, but we still have a lot of work to do.

We've never been very good at being conservative.

And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

payment methods

We've never been very good at being conservative.

And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate