Big downward revision to GDP coming

[Skip Intro]

WASHINGTON (MarketWatch) -- The U.S. economy was growing much slower in the fourth quarter of 2006 than the government's first estimate of 3.4%, economists say.

Instead of fairly robust 3.4% annualized growth, the government's next estimate will probably be closer to 2.2%, according to median forecast of economists surveyed by MarketWatch. Instead of bouncing back, the economy would have turned in its third quarter in a row of below-trend growth.

The first quarter also looks fairly tepid, with weak retail sales, falling homebuilding and growing signs that business investment isn't picking up the slack.

Revisions to the data are common. On the first pass, the government must simply guess at some of the numbers in the report, such as trade, construction spending and inventory building for the final month of the quarter. The average revision is 0.5 percentage points. But this time, the revision will be at least twice the average. And it would be the largest downward revision in 15 years.

http://www.marketwatch.com/news/story/big-downward-revision-gdp-coming/story.aspx?guid=%7B7A8E709C%2D918E%2D4D90%2D8904%2DA94998CBD72A%7D&dist=TNMostRead

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[Vincardog]

1. How long do you think you can rob the middle and working class and still

have a "Healthy economy"?

Guess what neoConvicts as yea sew so shall ye reap.

[Robbien]

2. And on that news, the stock market climbs

The stock market shrugs off the GDP naysayers and closes the day at a new high.

The ownership society just laughs.

[StClone]

3. The Stock market is independent

Of main street realities.

[louis-t]

7. Chrysler stock went up 5 bucks on news of 13,000 layoffs.

kind of says it all, dudn't it?

[eppur_se_muova]

4. November elections are past, back to using real numbers now. nt

[DaveJ]

5. The article says it may be a "soft landing"

"maybe it's the fabled soft landing, with growth slowing just enough to ease the inflationary pressures without leading to a hard landing, otherwise known as a recession."

As if the economy has been so wonderful the past few years. :eyes:

[aint_no_life_nowhere]

6. Hurry, Karl - find some way to blame this on the new Democratic Congress

that just took office last month. Or, better yet, blame this on the new Democratic President coming up in 2008, whoever that will be. Hurry, before your minions in the RapePublic Party can reasonably stop blaming everything else on Clinton.

[WI_DEM]

8. makes me wonder if we might have a recession in time for 2008?