U.S. economic growth accelerated to the strongest pace in over six years late last year, with the Commerce Department Friday revising up its fourth-quarter estimate as businesses slowed inventory reduction and boosted spending, but consumers spent less than first thought.
Gross domestic product rose at a 5.9% annual rate October through September, the fastest rate since the third quarter of 2003, the Commerce Department reported. GDP expanded by 2.2% in the third quarter of 2009.A month ago, the department first estimated that GDP -- a measure of all goods and services produced in the economy -- rose by an annual 5.7% in the fourth quarter.
I'm sure the upward revision will be commented on by all the doom and gloomers .....
6 comments:
PCE and residential investment decreased. Not good.
http://www.calculatedriskblog.com/2010/02/q4-gdp-revised-to-59.html
I wonder what accounts for the big difference in the CB sentiment number and the Michigan one.
Laughing at those who said the GDP would be revised downward is a legitimate thing to do. But only if you were to give us some details about this upward revision, as you have done in the past when GDP is released. Why not explain how the analysts are wrong who are saying that this GDP upward revision is indicative of a worse situation for actual growth than the lower GDP number announced last month?
The phrasing of the questions about present conditons is different in The Michigan survey and the Conference Board survey.
The Michigan survey tends to ask
about economic conditions and the Conference Board tends to focus on labor conditions.
Meteor Blades, this is bonddad's blog. He can write whatever he feels like on it. He's under no obligation to you or to the Daily Kos THE SKY IS FALLING!!! crowd.
OK, personal vendettas aside, we're talking about a revision amounting to a whopping 0.2% annualized.
Saying it didn't go down is only noteworthy in the sense that Chicken Littles were holding their breath that it would, perhaps due to some conspiracy theory where the government went Enron on the numbers. As long as it's not a straw man argument, bonddad is free to refute that, which is exactly what he did.
Explaining why it went up isn't necessary because, well, it was a whopping 0.2% correction. The explanation could be as simple as cleaning up clerical errors.
Post a Comment