Thursday, August 27, 2009

Q2 GDP Remains at 1%... Breakdown Shifts

Consumption, Government Spending, and Net Exports were better than first reported, but was offset by a larger decline in Investment. Marketwatch reports:

The economy contracted four quarters in a row for the first time since the Great Depression of the 1930s. Compared with a year ago, real GDP is down 3.9%. The revisions to second-quarter GDP released on Thursday offset each other. The negative 1% growth rate was identical to the government's first estimate released a month ago. The government revises the data as it gets more complete and accurate information.

Economists surveyed by MarketWatch were expecting GDP to be revised to negative 1.5% annualized.

Source: BEA