Economic growth revised down in 4th quarter (Even worse than expected)

[Pale Blue Dot]

http://www.msnbc.msn.com/id/17379310/

The economy grew at a sluggish 2.2 percent pace in the final quarter of last year, much slower than initially estimated, in the sort of unusually large revision that has happened only seven times in the last 30 years.

The latest reading on the gross domestic product, released Wednesday by the Commerce Department, came a day after stocks on Wall Street and around the globe took a nosedive. The new figures showed the economy in a considerably weaker state than the government first estimated when it said the expansion in the last three months of 2006 was at a 3.5 percent pace. The principle reason: Businesses tightened their belts amid fallout from the troubled housing and automative sectors.

The new GDP figure for the October-to-December quarter was a tad slower than the 2.3 percent growth rate economists were forecasting and clearly less sunny than that original estimate. The GDP, which measures the value of all goods and services produced within the United States, is the best overall barometer of economic health.

[AValdoux]

1. Economic Indicators

My problem with economic indicators is who prepares them. The economy is the one thing the GOP uses to defend the Bush Administration. Who prepares the economic indicators? Does anyone believe the commerce department is above manipulating the numbers?

AValdoux

[aceman2373]

2. Well, at least it's moving in the right direction,

it should be better this with the Dem congress.

[Zynx]

3. Problem is growth is clearly decelerating.

The trend in all numbers is towards diminishing growth.

[MUAD_DIB]

4. Yipeeeee! Another recession on top of the one we never left!

Time for another tera attack to save prezdent monkeynutz.

[Quantess]

5. The expectations were probably

not set low enough. I bet someone will get fired for projecting too high.

[OnionPatch]

7. In this administration

they probably get fired if they DON'T project too high!

[barb162]

9. No, this has been happening for 6 yrs. They are constantly

predicting too high under Bush. It's a set-up. For next quarter, they will predict high also and then revise downward when the real numbers start coming in.

[nadinbrzezinski]

10. DING, DNG DING

and if they could, they woudl not release even these numbers...

[AX10]

6. The economy is going to slowdown. It's all part of the cycle.

[barb162]

8. SInce Bush came in they are always revising their glowing

predictions downward to equate with reality.