Q3 GDP Slips Further to 2.2%

GDP’s 3rd revision came out this morn, and it was below consensus:

“Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 2.2% in the third quarter of 2009, (that is, from the second quarter to the third quarter), according to the “third” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP decreased 0.7%.

The GDP estimate released today is based on more complete source data than were available for the “second” estimate issued last month. In the second estimate, the increase in real GDP was 2.8%.

The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, private inventory investment, federal government spending, and residential fixed investment that were partly offset by a negative contribution from nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.”

Futures softened a bit, but are still positive.

Q3 GDP 3rd rev

chart courtesy of Barron’s Econoday

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Source:
GROSS DOMESTIC PRODUCT: THIRD QUARTER 2009 (THIRD ESTIMATE)
(GDP) Q3 2009

http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

Previously:
Is the Recession Over ? Extended Transition Phase (October 29th, 2009)
http://www.ritholtz.com/blog/2009/10/is-the-recession-over-extended-transition-phase/

Big GDP Number: 3.5% (October 29th, 2009)
http://www.ritholtz.com/blog/2009/10/big-gdp-number-3-5/

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