{"id":3090,"date":"2009-12-22T14:31:03","date_gmt":"2009-12-22T19:31:03","guid":{"rendered":"http:\/\/www.jasetaro.com\/blog\/?p=3090"},"modified":"2009-12-22T14:31:03","modified_gmt":"2009-12-22T19:31:03","slug":"commerce-department-revises-3rd-quater-gdp-downward-again","status":"publish","type":"post","link":"https:\/\/www.jasetaro.com\/blog\/2009\/12\/22\/commerce-department-revises-3rd-quater-gdp-downward-again\/","title":{"rendered":"Commerce Department Revises 3rd Quater GDP Downward… Again"},"content":{"rendered":"

Two months the media and Obama Administration were trumpeting the announcement that third quarter GDP had grown at an annualized rate of 3.5%. Unfortunately, their celebrations were a bit premature the Commerce Department today announced their final estimate of third quarter GDP… Not surprisingly third quarter GDP was a lot lower<\/a> than they originally estimated:<\/p>\n

Third-quarter GDP was originally estimated two months ago at a 3.5% annualized rate but was revised down to 2.8% growth in last month’s estimate. The revisions come from more complete data than was available at the first and second estimates.<\/p>\n

The 2.2% revised growth rate is the strongest since the third quarter of 2007, just before the recession began.<\/p>\n

Still, economists surveyed by MarketWatch had been expecting only a minor revision to 2.7% in the third estimate. See our complete economic calendar.<\/p>\n

Economists are forecasting stronger growth — about 4% on an annualized basis — in the fourth quarter ending Dec. 31. They also see annualized growth of about 3% in the first half of 2010.<\/p>\n

The revisions to third-quarter GDP were in three major areas: Business investment, consumer spending, and inventories.<\/p>\n

Final sales increased at a 1.5% annual pace, revised from 2.5%. Gross domestic purchases — sales to U.S. residents — rose at a 3% annual rate, revised down from 4%.<\/p><\/blockquote>\n

The revisions shouldn’t surprise anyone, as Ed Morrissey notes<\/a> the first-time home buyer tax credit and the Cash for Clunkers program accounted for roughly half of the original estimate of 3.5%. Assuming they still account for 1.5% of the final estimate that leaves a rather anemic 0.7% growth in the third quarter… That’s not a recovery, that’s life support!<\/p>\n

James Pethokoukis has more on the political implications here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Two months the media and Obama Administration were trumpeting the announcement that third quarter GDP had grown at an annualized rate of 3.5%. Unfortunately, their celebrations were a bit premature the Commerce Department today announced their final estimate of third quarter GDP… Not surprisingly third quarter GDP was a lot lower than they originally estimated: […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[26],"tags":[937,799,901,1363,938,570],"class_list":{"0":"post-3090","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy","7":"tag-3rd-quarter","8":"tag-cash-for-clunkers","9":"tag-commerce-department","10":"tag-economy","11":"tag-first-time-home-buyer-tax-credit","12":"tag-gdp","13":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pfpI7-NQ","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2895,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/10\/29\/third-quarter-gdp-rises-to-3-5-but\/","url_meta":{"origin":3090,"position":0},"title":"Third Quarter GDP Rises to 3.5%… But…","author":"Jeff","date":"October 29, 2009","format":false,"excerpt":"From Reuters: The U.S. economy grew in the third quarter for the first time in more than a year as government stimulus helped lift consumer spending and home building, fueling an unexpectedly strong advance. Signaling the end of the worst recession in 70 years, the Commerce Department on Thursday said\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4669,"url":"https:\/\/www.jasetaro.com\/blog\/2012\/09\/27\/gdp-collapse-shows-u-s-economy-in-danger-of-slipping-back-into-recession\/","url_meta":{"origin":3090,"position":1},"title":"GDP Collapse Shows U.S. Economy in Danger of Slipping Back into Recession","author":"Jeff","date":"September 27, 2012","format":false,"excerpt":"Ouch, the government today released its final estimate of U.S. economic activity in the second quarter, and the news isn't good, GDP was revised downward to 1.3% from the initial estimate of 1.7%: The fragile state of the US's economic recovery was thrown into focus once more Thursday as the\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3642,"url":"https:\/\/www.jasetaro.com\/blog\/2010\/10\/29\/ouch-third-quarter-gdp-just-2-0\/","url_meta":{"origin":3090,"position":2},"title":"Ouch: Third Quarter GDP Just 2.0%","author":"Jeff","date":"October 29, 2010","format":false,"excerpt":"If Democrats were hoping for good news on the economy leading into Tuesday's elections they didn't get. Third GDP came in at an anemic 2.0%: The U.S. economy grew at a 2 percent annual rate in the third quarter as consumer spending climbed the most in almost four years, a\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3518,"url":"https:\/\/www.jasetaro.com\/blog\/2010\/08\/25\/cnbc-economy-caught-in-depression-not-recession\/","url_meta":{"origin":3090,"position":3},"title":"CNBC: Economy Caught in Depression, Not Recession","author":"Jeff","date":"August 25, 2010","format":false,"excerpt":"I be the first one to admit I'm a pessimist on the economy, but not even I'm this pessimistic: Positive gross domestic product readings and other mildly hopeful signs are masking an ugly truth: The US economy is in a 1930s-style Depression, Gluskin Sheff economist David Rosenberg said Tuesday. Writing\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":732,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/10\/09\/bleak-outlook-economists-see-three-straight-quarters-of-economic-contraction\/","url_meta":{"origin":3090,"position":4},"title":"Bleak Outlook: Economists See Three Straight Quarters of Economic Contraction","author":"Jeff","date":"October 9, 2008","format":false,"excerpt":"From the Wall Street Journal: The U.S. economy has sunk into a recession and government action is critical to stem the damage, according to economists in the latest Wall Street Journal forecasting survey. On average, the 52 economists surveyed now expect gross domestic product to contract in the third and\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":67,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/04\/30\/recession\/","url_meta":{"origin":3090,"position":5},"title":"Recession?","author":"Jeff","date":"April 30, 2008","format":false,"excerpt":"Can we put an end to the recession talk at least for now? The last time I checked a recession was defined as two or more consecutive quarters of negative growth. So far we haven't had a single quarter of negative growth so all this talk of a recession is,\u2026","rel":"","context":"In "Money & Investing"","block_context":{"text":"Money & Investing","link":"https:\/\/www.jasetaro.com\/blog\/category\/money-and-investing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/3090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/comments?post=3090"}],"version-history":[{"count":0,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/3090\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/media?parent=3090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/categories?post=3090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/tags?post=3090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}