• phone: 250-592-4422
  • fax: 250-592-6600
  • toll-free: 1-877-231-4422


Blog by Dave Lynn

Read this page to learn more about my current listings and I will add some market tips as well. To see details on items only in a certain category, chose one under the Categories heading on the left hand side of the page near the middle. To get back further than this month's entries, click the appropriate month under Archives on the left hand side of the page near the bottom

Blog by Dave Lynn

<< back to article list

  • +1
US Economy Forcast to Strengthen

US Q4 Real GDP - January 30, 2013

The US economy unexpectedly contracted by 0.1 per cent in the fourth quarter of 2012 as growth was pulled down by the largest decline in defense spending in four decades. The US economy expanded 2.2 per cent for all of 2012.

While the modest decline in GDP is likely to spur use of the "R" word (recession) in the media, it is worth noting that today's release is the advanced estimate for real GDP and is subject to revisions which can be substantial. Moreover the contraction in output was almost entirely due to an unprecedented plunge in defense spending, which along with slower private inventory accumulation, pared 2.6 per cent from real GDP growth. In fact, the underlying details of the report were actually quite positive. Consumer spending accelerated on the largest personal income gains in four years while both business spending and residential construction investment grew at a double digit rate. These details, along with strong employment growth in recent months, suggests that US growth will pick-up in the first quarter of 2013.

“Copyright British Columbia Real Estate Association. Reprinted with permission.

 By Dave Lynn