I think the Associated Press was expecting a bigger adjustment when one of its writers crowed earlier this month about a government trade report’s results indicating that GDP would be revised into positive territory. That happened, but only by the smallest possible amount.
Seriously, big whoop:
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 0.1 percent in the fourth quarter of 2012 (that is, from the third quarter to the fourth quarter), according to the “second” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.1 percent.
It’s pretty hard to make an argument that sequestration will slow down an economy which is already crawling at a snail’s pace — but the left will make the argument anyway.
Zero Hedge says expectations were for the number to go to an annualized +0.5%.