This week’s US gross domestic product (GDP) data paints a bright picture for the second quarter and a less gloomy first-quarter decline than first published. As impressive as the rebound looks on the surface, we think it’s still understated.
A first-quarter productivity slump fueled concerns about the US economy, but second-quarter labor and company earnings data indicate better productivity and underlying growth. In short, the data point to a US economic cycle that’s broader and stronger than it appears on the surface. (more…)