Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

US GDP: The breakdown

Read here:
US GDP: The breakdown

Some salient points from the GDP release (as compiled by Haver analytics)

A longer and more deeper look into US GDP and inventory cycle tells us that the de-inventorization that we saw Dec 2008 and March 2009were the sharpest ever from the time that GDP was released by BEA.

Chart: GDP numbers and Inventory stocking 1947 to 2009

But every time inventory cycles have shrunk, US has shown a remarkable ability to spring back with a vigor that has left many surprised. The question then is whether US can repeat their past record of a vigorous inventory build up which will further lead the GDP growth onto a more stable trajectory?

Rising Inventory cycles have been led by creation of new jobs which have led to sustained reduction in unemployment rates. Will the current cycle of Inventorisation lead to such a conclusion is left to be seen.

The 1992 -2000 period was the golden era for American middle class as Jobs were plenty. A quick look at the charts below show the reasons. They were period that were leading to strong job creation through inventory build up which in turn was being pulled through massive economic activity.

Chart:Un-employment rate 1948 to 2009:

This weeks Job numbers should be an important trend indicator on whether the strong GDP number indeed are supporting the needed jobs or are these just blips.



Disclosure: None