States Have Stopped Dragging Down GDP
Posted at 9:30 a.m. on Dec. 21, 2012
The Bureau of Economic Analysis revised the third quarter GDP number upwards from 2.7% to 3.1%. Bill McBride digs into the numbers and finds that the revision “was due to increases in the estimate of personal consumption expenditures (PCE), trade, and state and local governments.”
“Although not as large a negative as the worst of the housing bust (and much smaller spillover effects), this decline has been relentless and unprecedented. The good news is the drag appears to be ending. I don’t expect state and local governments will contribute much to GDP growth in 2013, but just stopping the drag will help.”
