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Why GDP and Jobs Numbers Are Contradicting Each Other

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So... are we in a recovery, or not?

The big number, U.S. Gross Domestic Product, or GDP seems to say we've taken a slide, dipping .1% in the fourth quarter of 2012.

While growth has been small the last couple of years, we haven't seen a dip in the GDP since 2009.

But in that same week, fairly good job numbers came out... 157,000.

Experts we spoke with seem to be leaning toward trusting the jobs numbers.
Ryan McKeown, with Wealth Enhancement Group, says, "GDP is really a measure of how much actually is taking place in the economy. I would look at it as more an actual measure - how much money is moving around our economy - not so much as, 'is our economy doing well?'"

McKeown says a huge driver of the low GDP number came from decreased military spending, in anticipation of huge spending cuts to be made if the President and Congress can't work out a deal on the budget.

Another part of the dip, came from Super Storm Sandy, which ravaged the East Coast. A one-time disruption, and not a true measure of the economy.

McKeown says, "This is a little bit different. Business aren't buying and selling inventory. Consumers can't get out and spend money. There's going to be a lot of rebuilding in the Ease due to Super Storm Sandy that we will end up seeing this spring."

So, apparently the jury is still out. We have to wait to see what 2013 has to offer.