"Job Watch" has consistently suggested that the economy is not doing as well as pundits suggest. Today we get a bit of that confirmation: GDP for 4Q14 revised sharply down, from 2.6% to 2.2%.
In a sense that's not a big deal, I suppose, in some folks' minds, but some pundits would have rounded the 2.6% to 3%, and now it's been revised to 2.2%, which for all practical purposes is 2%. There's a big difference between 2% and 3% for folks who follow this stuff.
But I love the spin (in bold below):
Reuters is reporting:
U.S. economic growth braked more sharply than initially thought in the fourth quarter amid a slow pace of stock accumulation by businesses and a wider trade deficit, but the underlying fundamentals remained solid.
Gross domestic product expanded at a 2.2 percent annual pace, revised down from the 2.6 percent pace estimated last month, the Commerce Department said on Friday. The economy grew at a 5 percent rate in the third quarter.I believe there is one more opportunity for another revision. I could be wrong, but I think the final revision is next month.
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