Woo economy’s not as bad as we thought:

The Commerce Department reported that the gross domestic product — a billboard number that tallies the country’s economic output — shrank by an annual rate of 0.7 percent from April through June, a revision from earlier estimates of a 1 percent contraction. […] The numbers for the second quarter appeared to get a lift from the government’s $787 billion stimulus package. Federal, state and local governments spent more, and business spending on equipment and software was better than first reported.

And fortunately the stimulus funds aren’t drying up imminently. Still, there are a lot of real questions about how quickly growth will translate into labor market improvements and thus improving living standards for most people.