Q3 GDP Sees Sharp Revision Upwards
Posted at 11:45 a.m. on Nov. 29, 2012
The Bureau of Economic Analysis revised its initial 2.0% estimate of GDP growth in the third quarter, showing a sharp increase to 2.7%.
Forbes: “The 2.7% growth is a welcome number—GDP figures are revised twice from the first figure—because it suggests consumers are holding up well under economic pressure. It remains weak, however, by traditional measures, and it will do little to meaningfully lower unemployment. Most economists say the country must grow more than 3% to make significant headway.”
Matthew Yglesias: “I was also interested to see that on the nominal side, the revised current dollar GDP growth estimate is 5.5 percent. That’s significant. The pre-crisis trend was for nominal income to grow at about five percent per year. Then we fell way below that level during the peak crisis years, and never had the kind of sustained nominal bounce-back that would bring us back to trend.”