Economy Grew Slower Than First Expected in Q3

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.
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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