And this is without removing government spending!
Posted on 11/26/2011 8:17:31 AM PST by SeekAndFind
WASHINGTON (MarketWatch) — The U.S. economy grew at a slower pace than originally estimated in the third quarter, mainly because companies reduced inventories and did not invest as much.
The Commerce Department cut its estimate of gross domestic product to 2.0% from a first reading of 2.5%. Government’s second revision of GDP includes data not fully available earlier, such inventory levels and trade data. As a result, it paints a more accurate picture of U.S. growth.
Economists surveyed by MarketWatch expected the government to trim its estimate to 2.3%.
Still, the 2.0% growth rate was the fastest since the fourth quarter of 2010. The economy only grew at a 1.3% rate in the 2011 second quarter and 0.4% in the first quarter.
And most economists predict the U.S. will grow even faster in the final three months of this year — 2.5% based on the latest MarketWatch forecast.
The main reason: consumer spending has accelerated. In the third quarter, real final sales were left unchanged at a healthy 3.6% increase. Spending was also up sharply in the first month of the fourth quarter.
Real final sales, which excludes imports, is viewed as the best indicator of economic activity in the GDP report because it measures domestic consumer demand. Consumer spending accounts for as much as 70% of all U.S. growth.
What’s more, a decline in inventories is often followed by an increase. That suggests fourth-quarter GDP could get a boost from rising inventories.
Yet while the economy accelerated since late summer, the U.S. is still not growing fast enough to put most Americans who want a job back to work. The unemployment rate stood at 9.0% in October.
“The surprises were not really much of a surprise and really are not to the main GDP components that determine trend growth,”
(Excerpt) Read more at marketwatch.com ...
Must be those EEEVIIIL 1%ers doing their work again. /s
This coming week’s headlines are already written....
Best Black Friday Ever!
Best Cyber Monday Ever!
(but they’ll tell us we MUST Tax online sales)
Unemployment WAY down!
(Thanks to the 3 day work week)
Heil Hussein!
Funny how all these pundits and politicos say obammy is so damn smart.
His policies are driving us to the poor house, cept for those who give him big campaign bucks.
Frankly, based on an average of the last ten or so quarterly GDP revisions, I’m surprised it wasn’t revised downward .7% to just under 2.0%
1/2% is the size of a rounding error -- We are dead in the water; and that's by the gov's most generous lies estimates.
“The U.S. economy grew at a slower pace than originally estimated in the third quarter, mainly because companies reduced inventories and did not invest as much.”
No. The U.S. economy grew at a slower pace than originally estimated in the third quarter, mainly because any economist thinking 2.5% was either lying or insane.
With what Obama and the socialist libs in this country our doing it’s a miracle we have anything close to 2 percent growth.
With what Obama and the socialist libs in this country our doing it’s a miracle we have anything close to 2 percent growth.
I believe this has been revised down so that if it goes to 2.5% next year they can claim that Obama has succeeding in “improving growth 25%” or some such nonsense.
Everyone who wants a job should be able to get a job. Maybe not they job they dream about, but a job.
This coming week?
Rounding Up Another Week Of Great Economic Data
Oh yeah, vote for Obama.
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