Weaker GDP Numbers Sink ETFs
Friday, June 25th, 2010Tom Lydon submits:
The U.S. economy grew in the first quarter, but the growth has been revised slightly downward. Exchange traded funds and the markets are tumbling early on the news.
U.S. GDP grew 2.7% in the first quarter, revised downward from the previous estimate of 3% growth and far slower than the fourth quarter’s pace of 5.6% growth. In any other situation, 2.7% growth would be something to celebrate. Now, though, it underscores the weakness of the recovery so far. For comparison’s sake, after the recession in the early ’80s, GDP grew between 7% and 9% for five consecutive quarters. Much of the weakness is blamed on consumer spending, which accounts for two-thirds of the numbers.
