Tuesday, December 22, 2009
GDP for 3rd quarter revised Down Again.
Everyone remembers.......The Commerce Department on Thursday said the economy expanded at an annual rate of 3.5 percent in the July-September period, snapping four down quarters with its fastest growth pace since the third quarter of 2007.
Some might remember the AP reporting......Commerce Department says GDP growth over the summer was 2.8 percent not 3.5 percent.
Wellllllllllllllll, How about this...... The annualized growth number for Q3 turns out to have been 2.2%, a revision of over a third from its original estimate two months ago.
The main factors behind the downgrade: consumers didn't spend as much, commercial construction was weaker, business investment in equipment and software was a bit softer and companies cut back more on inventories, according to Tuesday's report.
If they eliminate the Cash for Clunkers program and the first-time homebuyer tax credit, what real growth was there?