November 23, 2010

3Q10 GDP First Revision: An Annualized +2.5%

Filed under: Economy,Taxes & Government — Tom @ 9:10 am

From Uncle Sam’s Bureau of Economic Analysis:

Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 2.5 percent in the third quarter of 2010, (that is, from the second quarter to the third quarter), according to the “second” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 1.7 percent.

… The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, nonresidential fixed investment, exports, and federal government spending that were partly offset by a negative contribution from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

The acceleration in real GDP in the third quarter primarily reflected a sharp deceleration in imports and accelerations in private inventory investment and in PCE that were partly offset by a downturn in residential fixed investment and decelerations in nonresidential fixed investment and in exports.

That’s nice.

As you can see from the graphic in the far right column (or click here to see a larger version), annualized growth in Quarter 5 of the Reagan Recovery was an annualized 8.5%. What a difference applying supply-side econ policy could have made.

That’s why, though it beats the alternative, I won’t go beyond “nice” in describing today’s news.

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2 Comments

  1. Is may just be me, but the Bureau’s explanation of whats behind the numbers seems mighty confused at times. Not just in this report, but in many of them.

    Comment by zf — November 23, 2010 @ 11:05 am

  2. [...] 4 — 2nd Quarter GDP was revised upward from 2.0% to 2.5%, annualized. That’s nice, but as noted last week, the comparable figure during the fifth quarter of the Reagan recovery in 1984 was an annualized [...]

    Pingback by BizzyBlog — November 30, 2010 @ 3:11 pm

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