The US Gross Domestic Product decreased at an annual rate of 1% in Q2 of ’09, versus a whopping drop of -6.4% in Q1.
Interestingly though not surprisingly, residential investment (RI) as a percent of GDP fell to 2.4%, its lowest level since WWII. RI has been declining now for 14 consecutive quarters, providing a significant drag on the economy during this time.
As a leading indicator of economic health, we look forward to RI turning positive by the end of this year, even though we don’t expect its rebound to turn any heads.


