The following is typical of comments on the GDP release:
The U.S. economy expanded at a healthy pace during the third quarter, a sign of sustained growth fueled by government spending and a narrower trade deficit despite mounting concerns about the health of overseas economies.
First, when you follow annual rates the feeling is you´re on a roll coaster. Lots of “ups and downs”. That´s always been true, even during the “Great Moderation”.
Over the last four years, after recovering from a “stroke”, measured on a year over year basis the economy´s “EKG” shows signs of high stability. But if you take the economy´s “pressure” it will come up “low”.
The charts illustrate.
And in this kind of situation some “signs” – like unemployment – give out misleading information, confusing the “medical board”.
Some say the economy will never be able to run at “previous speeds” and at higher levels, having been “secularly stagnated”!