Posted on 11/29/2007 6:32:25 AM PST by Sub-Driver
Economy Grew 4.9% in 3rd Quarter, Up From Previous Estimate of 3.9% By JEFF BATER November 29, 2007 9:06 a.m.
WASHINGTON -- The U.S. economy soared last summer, growing at a rate much stronger than earlier estimated, but the earnings of companies were flat, the government reported Thursday.
Gross domestic product rose at a 4.9% annual rate July through September, the fastest quarterly pace since 7.5% in third-quarter 2003, the Commerce Department said.
The new, 4.9% estimate for third-quarter 2007 GDP reflected a revision up from a previously reported 3.9% increase. Higher inventories and exports were behind the government's revision to GDP, a measure of all goods and services produced in the economy.
The median estimate of 20 economists surveyed by Dow Jones Newswires was a 4.9% increase in the third quarter. The surge beat the strong, 3.8% pace of second-quarter GDP. But data suggest the economy slowed, perhaps sharply, in the current, fourth quarter; the first estimate of GDP for the period won't be released until Jan. 30.
Corporate profits after taxes were unchanged in the third quarter, at $1.152 trillion, from the second quarter, the report showed. Profits in the second quarter increased 5.2%. Year-to-year, profits rose 2.7% since the third quarter of 2006.
(Excerpt) Read more at online.wsj.com ...
But, credit, houses, mortgages are all killing Americans.
No, wait that comes from the MSM cannot be trusted.
yeah, but...but....there are 50 gazillion Americans without health insurance!!!!
Larry Kudlow said this on JB the other night. This is not new to wall street.
Puts the Fed in an even tougher spot; the equity markets are howling for another rate cut, but these numbers are going to increase concern over inflation.
Oh Snap!!
Harry Reid is saddened. Nancy Pelosi hates this news. Democrat candidates on suicide watch.
We’re doomed..........
It’s actually very good! It’s easy to show huge gains when you start with little to nothing as is the case in developing nations. In established and developed economies such as the US, 4% growth is actually very impressive. Denmark for example is doing fairly well, and they are sitting at 3.5%. France and Germany are nearly half with 2.2 and 2% respectively. The point is that you should not expect 10% growth in a developed economy, and 4% is already on the impressive side.
Frankly, though I’m 100% in support of the war, the war and the rising cost of oil has had a negative impact (Of course for others as well) and we probably could be punching out even higher rates if it were not for these drains on us. I imagine that the conservative estimates bellow 4% by some was largely based on oil prices.
The MSM will just re-run 'the subprime meltdown' instead.
Bush’s fault.
Democrats and media are deeply saddened
First time I went to the link the GDP story was there. Now it’s a story about new home sales. But there is another story that talks about a 3.9% GDP’s 3.9% Was the 4.9% story in error?
Ben Bernanke, please pick up the nearest Red Inflation Telephone.
Mr. Bernanke, Uncle Miltie is on line 1, and he doesn’t sound happy.
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My goodness ... it’s like your child get one A after another after another ... and you’re worrying, omygod, what if Johnny gets a B.
“Economy Grew 4.9% in 3rd Quarter, Up From Previous Estimate of 3.9%”
I blame Bush.
In this case, a survey of estimates from economists produced by the Commerce Dep’t isn’t to be trusted completely before all the revisions are put in later.
But first, let’s get to the source and get the media out of the way:
http://www.bea.gov/newsreleases/national/gdp/2007/pdf/gdp307p.pdf
Second, when you read the numbers therein, without the useless intermediary of business ignorant people in the lamestream media, you see that the picture isn’t all cherries and roses.
Go through the section “Corporate Profits” carefully and you’ll see it.
Isn't this the phrase that's been inserted into nearly all stories on the economy during the Bush administration?
Is this adjusted for the falling value of the dollar? We know inflation is being grossly under represented. Just go buy lunch somewhere and think what did a sandwich cost last year? Or go to a candy machine where stuff cost 65 cents 2 years ago, 75 1 year ago and $1 today.
Can’t wait to talk to local retiree who was so effected by the recent market correction, everyday he was doom and gloom until I iterated all the good things, to which he did know businesses were doing very well. He must just watch CNN all day.
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