Economy Grew Slower Than First Expected in Q3
The Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce released their "second estimate" for Q3 GDP growth earlier today.
The BEA had originally forecast that gross domestic product (GDP) in the United States had grown at an annualized rate of 2.5% in the third quarter. The "second estimate", which is based on more complete data, was revised down to 2.0%.
Here is annualized economic growth in the United States over the past 8 quarters:
Q3/2011 - +2.0%
Q2/2011 - +1.3%
Q1/2011 - +0.4%
Q4/2010 - +2.3%
Q3/2010 - +2.5%
Q2/2010 - +3.8%
Q1/2010 - +3.9%
Q4/2009 - +3.8%
As you can see, after a post-"Great Recession" bounce, the US economy has slowed down once again and is not doing much of anything. The economy is being bogged down by a number of different factors, including continued high unemployment, weak home prices and worries over the nation's fiscal position and Europe.
Q3/2011 GDP growth was helped out by a healthy increase in real personal consumption expenditures. Real PCE, which increased by just 0.7% in Q2/2011, gained by 2.3% in the third quarter.
Source: BEA.gov - Q3/2011 GDP Second Estimate
Filed under: General Knowledge