Has there been a Quarterly GDP estimate since the First Quarter of 2009 which has NOT been subsequently revised down?
(Reuters) – The U.S. economy came perilously close to flat-lining in the first quarter and grew at a meager 1.3 percent annual rate in the April-June period as consumer spending barely rose.
By Lucia Mutikani | reuters
The Commerce Department data on Friday also showed the current lull in the economy began earlier than had been thought, with the growth losing steam late last year.
That could raise questions on the long held view by both Federal Reserve officials and independent economists that the slowdown in growth as the year started was largely the result of transitory factors.
Growth in gross domestic product — a measure of all goods and services produced within U.S. borders – rose at a 1.3 percent annual rate. First-quarter output was sharply revised down to a 0.4 percent pace from a 1.9 percent increase.
Economists had expected the economy to expand at a 1.8 percent rate in the second quarter. Fourth-quarter growth was revised to a 2.3 percent rate from 3.1 percent.
“The second quarter disappointed, but the first-quarter downward revision is more disturbing. It advances the pangs of concern. The debt ceiling nonsense is not going to help us. We’re already in an economy that is subpar,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
Less than a half percent (0.4) growth in the First Quarter, and a second downward revision of Fourth Quarter 2010. Perhaps Reuters is being a bit too harsh?
Burried (13th paragraph) in the same Reuters report, but as published by a different outlet, we find:
The annual revisions of U.S. GDP data from the Commerce Department showed the economy contracted at an annual average rate of 0.3 percent between 2007 and 2010. Output over that stretch had previously been estimated to have been flat. The economy needs to grow at a rate of 2.5 percent or better on a sustained basis to chip away at the nation’s 9.2 percent unemployment rate.
Newsflash: Any contraction lasting two or more consecutive quarters is a recession.