Economy grew more slowly than first thought in fourth quarter

[OhioChick]

Source: AP

Friday, February 25, 2011, 10:44 AM

WASHINGTON -- Deeper spending cuts by state and local governments weighed down U.S. economic growth in the final three months of last year.

The government's new estimate for the October-December quarter illustrates how growing state budget crises could hold back the economic recovery.

The Commerce Department reported Friday that economic growth increased at an annual rate of 2.8 percent in the final quarter of last year. That was down from the initial estimate of 3.2 percent.

The weaker figure was disappointing and prompted some economists to lower their forecasts for economic growth in the current January-March quarter.

Read more: http://www.cleveland.com/business/index.ssf/2011/02/economy_grew_more_slowly_than.html

[ChromeFoundry]

1. Unexpectedly, right? n/t

[katnapped]

2. "No one could've predicted!"

:sarcasm:

[OHdem10]

3. I read that all the layoffs and cutbacks in the State Government

contributed mightily to the drop.

Goldman Sachs has warned that the Bill for Belt Tightening
which passed the House will contribute to futher drops in growth.
A 2 point drop can decimate job growth. Oh, but the Tea Party
are the all wise on budgets--cut cut cut. (sarcasm)

[Imagevision]

4. What's been done to make the economy grow - latest housing sales are because of foreclosures...

[JDPriestly]

5. And deeper federal spending cuts will weigh down even more.

We don't need spending cuts. We need to cut imports and outsourcing.

Bring jobs back to America, and tax revenues will easily cover government expenditures.

[GeorgeGist]

6. The first step to financial solvency is to decrease your income.

:sarcasm:

[No Elephants]

7. You mean, an economic forecast was rosier than reality? A lot of that going around.

[sarcasmo]

8. Watch the gas prices slow it down even more.

[Imagevision]

9. Alleged gas price supply threat is nothing more then anticipation made by oil companies there hasn't

been any change in production since Mubarack or Gadaffi incidents just speculation brought on by the good ole oil boyz! You know, the ones who insisted on keeping the Bush tax cuts.