Wow: 2Q11 GDP Cliff-Dives to Annualized 1.3% From Previous 1.7% Estimate; Expectations Were For No Change
(originally posted at 8:43; moved to the top because it’s the more important economic report today)
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.
File this 24% reduction from last month’s estimate under “unexpectedly.”