Lousy Economic Recovery? Doesn't Feel Like It

Job data, car sales, and home prices are doing better than GDP
Autoworkers build a Jeep Cherokee at the Chrysler Group Toledo Assembly Complex in Ohio Photograph by Jeff Kowalksy/Bloomberg

The 1.7 percent increase in gross domestic product for the second quarter shows a U.S. economy that’s plodding along. The job market looks much stronger, so there’s obviously a disconnect. Many economists are betting the labor figures right now are more accurate, while gross domestic product is understated for a host of reasons and will eventually catch up. “The employment numbers are closer to the true picture,” says Harm Bandholz, chief U.S. economist at UniCredit Group and the top payroll forecaster in the past two years, according to data compiled by Bloomberg. “I’m confident GDP growth will pick up in the second half and even more in 2014.”

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