Sunday, October 20, 2013
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Third Quarter GDP Growth Estimate Falls to 2 0
The second estimate of third quarter GDP indicates that the economy expanded at 2.0% during the quarter, down from an initial estimate of 2.5%, according to a Bureau of Economic Analysis report released this morning. Over the past year the economy has expanded just 1.5%, well below levels needed for a self sustaining recovery.
The second estimate of third quarter growth was 0.5%, or $15 billion, lower than the initial estimate. The decline is due primarily to a large downward revision to private inventory investment and smaller downward revisions to nonresidential fixed investment and personal consumption expenditures. These drags on GDP were partially offset by a downward revision to imports.
Despite the downward revision, third quarter GDP showed improvement from the second quarter’s 1.3% growth. The acceleration in growth reflects stronger growth in consumer spending, business investment, and exports as well as a smaller drag from state and local government. A large drop in inventory investment was the primary drag on growth in the third quarter.
Corporate profits rose at 2.1% (not annualized) in the third quarter, slower than the 3.3% growth seen in the second quarter. Despite the slower rise, profits are up almost 8% over the previous year.
Read the report.
Third Quarter GDP Growth Estimate Falls to 2 0
The second estimate of third quarter growth was 0.5%, or $15 billion, lower than the initial estimate. The decline is due primarily to a large downward revision to private inventory investment and smaller downward revisions to nonresidential fixed investment and personal consumption expenditures. These drags on GDP were partially offset by a downward revision to imports.
Despite the downward revision, third quarter GDP showed improvement from the second quarter’s 1.3% growth. The acceleration in growth reflects stronger growth in consumer spending, business investment, and exports as well as a smaller drag from state and local government. A large drop in inventory investment was the primary drag on growth in the third quarter.
Corporate profits rose at 2.1% (not annualized) in the third quarter, slower than the 3.3% growth seen in the second quarter. Despite the slower rise, profits are up almost 8% over the previous year.
Read the report.