Skip to content

3Q09 GDP Revised Down, But 4Q Still Looks Strong

Written by

MikeMcD82

This morning’s unexpected downward revision of third quarter GDP to 2.2% from 2.8% was unexpected, but should be made up for by growth around 4.5% in the current quarter.  Looking at this morning’s data, several components were revised between the preliminary and final GDP estimate leading to a decline of -$17.3 billion. The revisions were mostly due to faster inventory liquidation, shrinking net export deficit, marginally lower consumer spending, and less nonresidential fixed investment.  Considering that this data is now three months old, and the outlook for the current quarter remains strong the market reaction from this surprise should be kept at a minimum. But, this data does highlight the fragility of the current economic recovery; lets not forget the preliminary estimate indicated third quarter growth of 3.5%.

Previous article

US Economics Week Ahead: Retailers not Dreaming of a White Christmas

Next article

Existing Home Sales-- Surprise to the Upside

Join the discussion

Leave a Reply

Your email address will not be published. Required fields are marked *