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2nd Quarter GDP Revised Down To 1.6%

Quietly noted in the ‘Economy’ section of the New York Times:

U.S. Economy Slowed to 1.6% Pace in 2nd Quarter

By MOTOKO RICH
August 27, 2010

Economic statistics released Friday offered the clearest sign yet that the recovery, already acknowledged to be sauntering, had slowed to a crawl.

The government lowered its estimate of economic growth in the second quarter to an annual rate of 1.6 percent, after originally reporting last month that growth in the April-June period was 2.4 percent.

The revision is a significant slowdown from the annual rate of 3.7 percent in the first quarter and 5 percent in the last three months of 2009.

The news came at the end of a week that showed the economic retrenchment that began in the second quarter has spilled over into the summer…

You can bet that under a Republican administration The Times would not call this a “retrenchment.” They would call it a “drastic cut” – or worse.

The bulk of the downgrade in the second-quarter G.D.P. was because government analysts had assumed that American companies added more inventory to their warehouse shelves than they actually did. The adjustment also took into account a sharp rise in imports, leading to a wider-than-estimated trade deficit…

Sure that was what happened. The “government analysts” were confused.

Economists have been revising their forecasts for growth in the second half, with Goldman Sachs now projecting annual growth of 1.5 percent

Again, lest we forget, under Mr. Bush numbers even twice this high were called a ‘recession.’

This article was posted by Steve on Friday, August 27th, 2010. Comments are currently closed.

3 Responses to “2nd Quarter GDP Revised Down To 1.6%”

  1. Right of the People says:

    So much for the summer of recovery, huh?

  2. Liberals Demise says:

    Good thing summer is over.
    Whew……dingleBarry couldn’t last another month of Summer of Recovery.

    “We’re getting shrimp here!”


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