Advanced GDP Estimate 3% with Lukewarm Economic Numbers (Economic Platform Stabilization)

There appears to be relatively stable economic numbers for August as of now. We did have a little dip in unemployment the month prior and a small increase in manufacturing. GDP and industrial investments seem to be rising a little. One might say that it appears still to be a fairly stable and healthy economy. People were projecting declines and all over the map so realizing something a little less exciting is helpful. To have a 3% advanced GDP measurement with lukewarm economic numbers is not the worst place to be.

What I'm looking for is whether there is a longer term homeostasis sustainable growth after the disruption of Covid in 2020. We had some bouncing around in economic shocks, a bump in growth and more stability thereafter as businesses, consumers, policies, and in general the economy adapted. We also saw an increased infrastructure as well as a level of digital shifts and improve technology adaptation. Supply chains also shifted.

 What one might wonder is if we are going into that Data/Information Age platform? Time answers all questions.

One thing small towns like Escanaba might consider is to look at the technology and emerging trends to determine the best place in which they can beat the market. For example, technology firms, micro custom manufacturing, ship building, paper products, small business/entrepreneurship in the downtown, skilled trades education, etc. hedged with things like tourism, and natural resources. That could depend on the ability to coordinate the local business community and develop methods to raise awareness of investment opportunities and find conduits for exportation. 

Here is something on Economic Platforms. I have been working on a theory for about 15 years on clusters and one of the ideas was that our economy would shift to new economic platforms and those countries that did it first would have long-tail benefits in terms of manufacturing, quality of life, and other attributes. i.e. Digital Era. Economic-Sociological Platforms (This article is really about exploration of an idea and not meant to create causal proof of any type.)

-Unemployment stays about the Same

-GDP Rises

-Wages and Technology seem to be growing together (wait and see)

-Manufacturing PMI 47.2% manufacturers indicated expansion below the 50 break even point. (Slight Improvement) Manf. PMI

The Need for New Jobs

Productivity-Employment Nexus

The following was taken from Gross Domestic Product (Second Estimate), Corporate Profits (Preliminary Estimate), Second Quarter 2024

 Real gross domestic product (GDP) increased at an annual rate of 3.0 percent in the second quarter of 2024 (table 1), according to the "second" estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP increased 1.4 percent.

Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $57.6 billion in the second quarter, in contrast to a decrease of $47.1 billion in the first quarter (table 10).

-Profits of domestic financial corporations increased $46.4 billion in the second quarter, compared with an increase of $65.0 billion in the first quarter. Profits of domestic nonfinancial corporations increased $29.2 billion, in contrast to a decrease of $114.5 billion. Rest-of-the-world profits decreased $18.0 billion, in contrast to an increase of $2.3 billion. In the second quarter, receipts decreased $6.2 billion, and payments increased $11.8 billion.

Unemployment for August 2024 stays the same. BEA Sept. 4, 2024