GDP Growth in the Third Quarter, Third Estimate – Growth That Matters
The Bureau of Economic Analysis (BEA) released the third estimate of real GDP growth for the third quarter of 2013. Real GDP growth was revised upward to a seasonally adjusted annual rate of 4.1%, from the second estimate of 3.6%. Real GDP grew at annual rate of 2.5% in the second quarter and 1.1% in the first quarter.
The first (or advance) estimate of real GDP growth was 2.8% and the second estimate was revised up to 3.6%, but that higher growth was somewhat misleading because it was heavily (almost exclusively) concentrated in inventory investment. That’s bad because it’s not just a one-time thing, in this case it’s likely to reversed in subsequent quarters because the push up was unsustainably large. The upward revision from 3.6% to 4.1% in today’s report is good news because it’s the right kind of growth: growth in personal consumption expenditures (PCE) and business fixed…
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