AP Disgrace: 'Bruised Economy Grows by Only 0.6 Percent'

Photo of Noel Sheppard.
By Noel Sheppard | April 30, 2008 - 09:47 ET

The Associated Press's Jeannine Aversa really should change her writing focus, because economics is clearly not her specialty.

After telling readers in March that "Dangerous cracks in the nation's job market" are "ominous signs that the country is falling toward a recession or has already toppled into one," Aversa had the gall to report Wednesday, "The bruised economy limped through the first quarter of this year at a six-tenths of a percentage point growth rate as housing and credit problems forced people and businesses alike to hunker down."

Are you joking? You, your wire service, and virtually every media outlet in the nation have been telling Americans that we're already in a recession. A government report comes out saying that we're not, and this is how you begin your article covering the surprising announcement?

How disgraceful. Sadly, that was just the beginning (emphasis added, h/t NB reader PunditDotCom):

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The country's economic growth during January through March was the same as in the final three months of last year, the Commerce Department reported Wednesday — but not the kind of statistic that economists define as a recession. Although the economy is stuck in a rut, it is still managing to keep growing — however slightly.

Rather than being contrite, Aversa seems disappointed, don't you agree?

As this is the first report from the AP, it will be interesting to see how lengthier editions later in the day, as well as tonight's network news broadcasts and tomorrow's print media, will cover this surprising announcement.

For example, at least Reuters had the decency to put the good news in the headline and opening paragraph:

First-quarter growth stronger than forecast
Wed Apr 30, 2008 9:35am EDT

WASHINGTON (Reuters) - The economy grew at a slightly stronger pace than forecast as 2008 began, helped by inventory-building that tempered a steadily deteriorating housing sector and less vigorous consumer spending.

So did Bloomberg News:

U.S. Economy Expanded at 0.6% Pace in First Quarter (Update1)

By Shobhana Chandra

April 30 (Bloomberg) -- The U.S. economy expanded at a 0.6 percent annual pace in the first quarter as an increase in inventories compensated for weaker consumer spending and a drop in business investment.

The gain in gross domestic product, the sum of all goods and services produced, was more than forecast and matched the rate of growth in the previous three months, the Commerce Department reported today in Washington. The last time the economy grew less was in the fourth quarter of 2002.

Will media report this as good news, and admit that we're actually not in a recession yet?

And, will they even bother addressing the better-than-expected Chicago Purchasing Managers number (emphasis added):

4/30/2008 9:48:56 AM The Chicago Purchasing Managers Index for April unexpectedly rose to 48.3 in April from 48.2 in March, according to a report released Wednesday morning.

Hmmm. Two better-than-expected reports. Media should cheer, right?

Don't hold your breath.

BTW: Jeannine Aversa isn't the only economics reporter at the AP that should consider changing focus. Take a look at how badly her colleague Joe Bel Bruno predicted these economic reports hours before they were released (emphasis added):

The Commerce Department is expected to report that the U.S. economy grew at an anemic annual rate of 0.3 percent in the first quarter, held back by the ongoing housing slump and declines in consumer and business spending.

In addition, the Chicago purchasing managers' index is expected to show more business contraction in the Midwest during April.

Nice job, AP. You really are the first place Americans should go for economic information...not!

—Noel Sheppard is the Associate Editor of NewsBusters.

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You know, I always thought

You know, I always thought that 'recession' was defined as two straight quarters of declining GDP...

How is there GDP growth? Obama and Hillary and EVERY media outlet that exists has told me we're already in recession.

Drat!

Noel trumps the Shrub Report! Foiled again!

I saw the talking heads at

I saw the talking heads at NBC seeming to salivate at the thought they would finally see their first indications of a recession. Oh well I guess they will have to wait another three months to see if the economy does what they want it to do.

UPDATE: NBC has already spun it into a sluggish growth...going to probably be bad news there (as expected).

"They need to have a course in college called common sense and everyone should take it. Problem is there isn't too many people that could pass or teach it." -my grandfather

Obviously, the primary

Obviously, the primary reason why they're doing this is to create an "issue" for November. And, somehow, they are going to make a case that we can tax and regulate our way out of a recession.

In my fantasy world, before a legal citizen is granted to right to vote, they would have to demonstrate a basic and fundamental understanding of:

Economics
Capitalism
Constitutional law

and basically be literate.

This blatent exploitation of ignorance in order to reap votes is beyond sickening. And, frankly, it happens on both sides (though the left definitely corners the market here).

Yesterday's Presidential New Conference

Didn't some dingbat reporter ask President Bush "when are you finally going to admit that we are in a recession?" at yesterday's news conference?  I wonder when somebody is going to ask for her press credentials...(I'll give you a hint - never).

/sarcasm on This just proves

/sarcasm on

This just proves that NB is part of the Vast Right Wing Conspiracy. How dare Noel report the facts when the news media refuses to do so:)

/sarcasm off

I guess the new action line will be "There will be a recession by the end of the year even if the media has to cause it."

 

I don't listen to all this

I don't listen to all this recession talk. I listen to my wallet. Between gas prices and food prices, this is killing me. April's a bad month with taxes due. I'm poor as a Church Mouse, and still don't qualify for the rebate...

I miss the good ol' days when I could go out to lunch. Instead, I eat at my desk to save money and not spend the gas.

It's killing me, I say...killing me.

Blue Collar Man

"I miss the good ol' days when I could go out to lunch. Instead, I eat at my desk to save money and not spend the gas."

Welcome to the blue collar world.

Give me a job, give me security
give me a chance to survive
I'm just a poor soul in the unemployment line
my god, I'm hardly alive
my mother and father, my wife and my friends
You see them laugh in my face
But I've got the power, and I've got the will
I'm not a charity case

I'll take the long night, impossible odds
keeping my eye to the keyhole
if it takes all that to be just what I am
well I'm gonna be a blue collar man

Things are A-OK, I'm sure...

After all, banks worldwide apparently can't fail.
JMR

The tax & spend drug war looks racist in the real world.

And I love how these nitwits

And I love how these nitwits are whining that the economy is "only" GROWING by 0.6 percent. Anybody who spends ten minutes learning about economics knows that the economy goes DOWN as well as go up. Bull economies are great. But you can't have bulls without the bears.

But these libs are desperately pushing the ignorant notion that evidence of GROWTH is a bad thing. The indicator is not spiking upward as steeply as they think it should, and it would be a horrendous disaster if the economy flattens or even goes down a little.

This is all because a Republican is in the White House, of course. It's the President's number one job, to oversee and regulate our economy. That's why we need a socialist to take over.

Change the definition of Recession, Noel

We need to be more like CBS Marketwatch, who -- after reporting the same "unexpected" increase in GDP growth, decided to explain to us why that wasn't the definition of a recession.

Huh???? Here's the reporter's (Rex Nutting, and he definitely is a nut) explanation: "While some people use the old rule of thumb that a recession is defined as two consecutive quarters of declining GDP, the actual working definition is a bit more nuanced".

So, the old definition is only a rule of thumb, eh? And we now need to apply the old liberal standby -- nuance. But, read on. It's not enough to call GDP a rule of thumb. Now we have to smash that concept once and for all: "GDP is a quarterly accounting gimmick that may not be an accurate reflection of the economic reality". So, it's now a gimmick!

And finally, we need to justify our position by bringing in those unnamed historians: "The economic historians who judge whether we've been in a recession use a variety of indicators, including GDP, but also job growth, income growth, industrial output and total sales by businesses".

Excuse me while I go throw up. This is just totally irresponsible; but it's standard fare at CBS Marketwatch, unfortunately.

___________________________________ 

If you can read this, thank a teacher. If it is in English, thank a Soldier. - My barber

What the MSM should be

What the MSM should be talking about is the ability of the US economy to withstand high oil prices and still grow!  Here's my finger in your eye Iran, Venezuela and you oil speculators!  Not only are we not in recession, we are still going to kick your butts if you step over the line pushing and funding terrorism.

Our enemies have vastly underestimated is our ability to adapt and become even more efficient when economically attacked. Make no mistake, this is an economic war! All they have done is make it more economically feasible to switch energy sources, find new ways to recover parts of the waste stream and thus put the US at a competitive advantage to the rest of the world.  The high oil prices for them have become a double edged sword, essentially a devaluing of oil by the devaluing of the dollar.  That's what happens when you attempt to manipulate the market on a "fungible" commodity. 

 Nancy Pelosi and Harry Reid, starving the poor one gallon of ethanol at a time. Fill your tank with E85 and cull a village.  

Redefining Recession

Perhaps our friends in the MSM, known for their great economic theorists and thinkers, are redefining the meaning of recession as any annualized quarterly growth rate that falls below the historical average of 3%.

"Of all tyrannies a tyranny sincerely exercised for the good of its victims may be the most oppressive." - C.S. Lewis

Broken Record

Unfortunately, Obama and Hillary will keep flogging that dead horse "The economy is in recession, the economy is in recession" and the MSM will keep eating it up.

With falling ratings and

With falling ratings and circulation, the MSM IS IN RECESSION and has been so for the past 5 years.  Misery loves company you know.  They want the rest of us to feel their pain so they don't have to face the obvious conclusion to their own failed business model - the dissemination of propaganda to advance an agenda.

 Nancy Pelosi and Harry Reid, starving the poor one gallon of ethanol at a time. Fill your tank with E85 and cull a village.  

Off the top of my head, I

Off the top of my head, I have a couple of questions. First suppose that the inflation figures are significantly understated, wouldn't that affect GDP? Next, suppose that imports are steadily falling (and exports slightly increasing) because of a relatively weak dollar, how would that affect GDP? Would both of these tend to over-estimate growth? Or have I just completely forgotten how GDP is calculated?  (a very real possibility, BTW)

Inflation understated by our "honest" government overlords??

Clearly you must be a "gold bug conspiracy theorist wacko" just like I've been for years, since calling you stupid names obviates any need to actually debate you intelligently. ;) Or you might have seen this inconvenient chart on Glenn Beck's show a few days ago...
JMR

The tax & spend drug war looks racist in the real world.

I just know that powerful

I just know that powerful MIS and the ability to convince oneselves of nearly anything are both VERY plentiful and a VERY dangerous combination. Interesting chart, BTW.

Karl Rove did it

we are actually in a full blown depresssion a la 1929, but Karl Rove put White House Pressure on the folks at Commerce to lie about it

( I'm still trying to find the darn soup line here in the Twin Cities. I guess it's because I'm a conservative they're hiding it from me. )

This is yet another

This is yet another pathetic example of politically biased reporting. Who's willing to bet that if a Democrat were in the White House, the same report would focus on how 'strong' the economy is under a Democrat???

The leftist media are clearly banking on the stupidity of the sheeple.