Third Quarter GDP Growth Not As Large As First Thought

Tue, 11/24/2009 - 6:10pm | posted by Doug Mataconis

WASHINGTON - The economy grew at a 2.8 percent pace last quarter, as the recovery got off to a slower start than first thought.

The Commerce Department’s new reading on gross domestic product wasn’t as energetic as the 3.5 percent growth rate for the July-September period estimated just a month ago.

The main factors behind the downgrade: consumers didn’t spend as much, commercial construction was weaker and the nation’s trade deficit was more of a drag on growth. Businesses also trimmed more of their stockpiles, another restraining factor

There will be at least one more revision coming next month, one wonders if the growth rate will be above 2.5 percent at that point.