September 27, 2012

Wow: 2Q11 GDP Cliff-Dives to Annualized 1.3% From Previous 1.7% Estimate; Expectations Were For No Change

Filed under: Economy,Taxes & Government — Tom @ 9:05 am

(originally posted at 8:43; moved to the top because it’s the more important economic report today)

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From the government’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 1.3 percent in the second quarter of 2012 (that is, from the first quarter to the second quarter), according to the “third” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 2.0 percent.

The GDP estimate released today is based on more complete source data than were available for the “second” estimate issued last month. In the second estimate, the increase in real GDP was 1.7 percent.

Expectations, according to Bloomberg and Reuters, were for no change.

File this 24% reduction from last month’s estimate under “unexpectedly.”

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4 Comments

  1. [...] With one week to go and before next week’s inevitable upward revision, this week’s result brings the third quarter’s average claims to 370,000, down by about 3% from the second-quarter average of 370,000 — when, as we also learned this morning, GDP grew by downwardly revised an absolutely dismal annualized 1.3%. [...]

    Pingback by BizzyBlog — September 27, 2012 @ 9:05 am

  2. [...] three major economic reports (just-noted durable goods and second-quarter economic growth, which was revised down sharply from an annualized 1.7% to 1.3% when no change was expected) were disasters, while the third and [...]

    Pingback by BizzyBlog — September 27, 2012 @ 1:13 pm

  3. I notice you don’t have a category called “unexpected”.

    snark

    Comment by dscott — September 27, 2012 @ 4:29 pm

  4. [...] a rare third-estimate writedown, the government said that second-quarter economic growth was an annualized 1.3% instead of the already anemic 1.7% reported a month ago. After its issuance, Reuters noted that [...]

    Pingback by BizzyBlog — October 4, 2012 @ 8:03 am

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