U.S. Economy Grew at 2.7% Rate, More Than First Estimated

[Purveyor]

Source: Bloomberg

By Shobhana Chandra - Nov 29, 2012
The economy in the U.S. expanded more than previously estimated in the third quarter as a narrower trade deficit and gains in inventory overshadowed a smaller gain in consumer spending.

Gross domestic product grew at a 2.7 percent annual rate, up from a 2 percent prior estimate, revised figures from the Commerce Department showed today in Washington. The median forecast of 82 economists surveyed by Bloomberg called for a 2.8 percent gain. Household purchases climbed at a 1.4 percent rate, the least in more than a year and down from a previously reported 2 percent rate, and income gains were also cut.

“We’re just muddling through,” said Brian Jones, a senior U.S. economist at Societe Generale in New York. “The mix between final demand and inventories was far less favorable. The consumer spending numbers are a reflection of the fact that job growth remains sluggish.”

The report helps explain why Federal Reserve policy makers have said they’ll continue to pump money into the economy to spur growth and reduce joblessness. At the same time, an improvement in housing, employment gains and healthier household finances may help underpin consumer purchases, the biggest part of the economy.

Read more: http://www.bloomberg.com/news/2012-11-29/economy-in-u-s-grew-at-2-7-rate-more-than-first-estimated.html

[plethoro]

1. Unless, of course, they cut entitlements and people scale back so that they and

their children don't have to move to under a freeway overpass.

[Javaman]

2. That's not bubble wrap, that's freep heads popping. nt

[FBaggins]

4. They're probably pleased. It wasn't good news.

Lower consumer spending combined with outsized inventory growth is a troubling combination.

And, of course, these things are always compared to expectations (which were actually higher).

[coalition_unwilling]

5. Just one more bounce in a dead cat bounce. Forget any V-shaped

recovery, so long as Rape-publi-scum control one house of Congress.

[FBaggins]

9. Already way too late for a V-shape.

That ship sailed a couple years ago.

The question now is whether we're able to stay out of a second recession.

[coalition_unwilling]

11. Good point(s). The surge in inventories combined with

weakening consumer demand does not bode well, especially when Rape-publi-scum demagoguery is factored in.

[dmallind]

6. ermmm

"Lower consumer spending" does not equal smaller gain in consumer spending. The latter is the truth. Inventory growth is also of variable import depending on whether it is gains from unconsumed expected demand or prebuilding for increasing demand. Is it inventory from lead or lag planning? No way I know of to tell from these data.

[FBaggins]

10. You read too much in to that.

This doesn't compare one quarter to a previous one... it's an adjustment to an already-reported figure.

I haven't reviewed the release, but reportedly consumer spending was lower than previously reported.

Inventory growth is also of variable import depending on whether it is gains from unconsumed expected demand or prebuilding for increasing demand.

True... but one way to tell the difference is how spending compares to projections. It's only evidence, not proof... but that's what we've got.

[muriel_volestrangler]

3. K&R

because it's embarrassing that a thread on a nobody removing a tattoo has more replies and recs than real news like this.

[CabalPowered]

7. good point

K&R

[Scurrilous]

8. K & R