Exports Will Not Save the Day This Time

I discussed here, here, and here the fact that exports were about the only thing keeping GDP in positive territory.

Well, well, lo and behold, what does the Fed tell us today in their statement accompanying another 50 basis point cut (emph. mine):

The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures. Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports.

Interestingly, we'll get the first read on Q3 GDP tomorrow morning, and it will almost certainly print with a minus sign in front of it, the only question being exactly how bad the quarter was.