Where's the growth?

That's the question Joel Naroff, president of Naroff Economic Advisors posed yesterday about the US economy ahead of Friday's release of 2Q07 GDP .

Fed chief Ben Bernanke told Congress last week that the US economy would continue to grow at a moderate pace this year before picking up in 2008.

However in the face of rising prices a consumer that is living off their credit cards and a tanking housing market were is the growth supposed to come from?

I have been flapping on about the current quarter's growth been driven by a restocking of inventory after the draw-down in 1Q07. Now that inventories have been replenished what will drive economic growth from here?

Exports I hear you say, possibly, however is that enough to drive growth considering that 2/3 of US economic activity is driven by a now ailing consumer?

Friday's GDP reading is forecast at a solid 3.2% for 2Q07. However that will probably be the best reading you will see for some time. Expect GDP to reverse gears in the 3rd quarter and come to a screeching halt in 2008.