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Economic Growth: GDP Estimate for First Quarter Was Too High

3 years ago
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Taking a closer look, the government said Friday that economic growth during the first quarter of 2010 wasn't as strong as analysts first thought, as spending by consumers was lower than earlier estimates.

The Commerce Department pushed down the previously reported 3 percent growth in the gross domestic product to 2.7 percent, a disappointment when compared to the 5.6 percent increase in GDP during the last quarter of 2009. A slowdown in business investment in inventory and fewer exports were partly responsible for the adjustment.
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Even so, the U.S. economy has expanded for three consecutive quarters after declining for four straight ones during the deep recession in late 2008 and 2009. In ordinary times, growth of 2.7 percent would be seen as healthy, the Associated Press said, but not so in a recovery from a serious recession. After the downturn in the early 1980s -- at the beginning of the Reagan years -- the economy grew at rates of 7 percent to 9 percent for five quarters in a row.

But there were some encouraging signs. Consumer spending was up overall, and GDP growth has averaged 3.5 percent over the last three quarters.






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8 Comments

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Rob & Kathy

Chuck1:32 PM Jun 25, 2010
The eye opener is that he economy has expanded for three straight quarters after four down quarters.
******************
No, the eye opener is that unemployment is still nearly 10%. Kind of dispells your claim doesn't it?...

June 26 2010 at 6:38 PM Report abuse +1 rate up rate down Reply
beckjr2000

These are the same people that say if the Government spends more money it will reduce the deficit! Right!!!!

June 25 2010 at 5:11 PM Report abuse +7 rate up rate down Reply
jspe7

The economy is expanding, but not as quickly as some of you screwballs think it should. The unemployment figures are starting to go DOWN, not like the Bush years-------have you forgotten 300,000 layoffs a month, then 400,000, then on and on up to 700,000
Have you forgotten who got us into this mess------the worst financial meltdown since the Great Depression? It was bush. Now say it slowly and put all the letters together so that you will not forget it B----U---S---H

June 25 2010 at 4:41 PM Report abuse -9 rate up rate down Reply
Ruffie

You see more & more of this kind of stuff happening. Figures come out that make Obama look like he's doing something....he racks up all kinds of credit and then a couple months later we are told the truth and it turns out the figures weren't what we were told. This happened with the GDP, unemployment, jobs created/saved, etc. It's to the point you can't believe anything the Government says anymore.

June 25 2010 at 3:28 PM Report abuse +9 rate up rate down Reply
judeduff

Every time Obama or Biden gives a speech about how we are turning the corner using data, that data ends up being inflated. The number of jobs created by the stimulus bill that they trumpeted was also revealed to be a farce. They gave plenty of speeches about sales of cars during Cash for Clunkers, but failed to follow up with the huge drop in sales once our tax dollars were no longer subsidizing it. Same with the home ownership plan. Lots of speeches about how our tax dollars were saving people from foreclosure, but nothing about how 441,000 of those mortgages were foreclosed on even after we poured so much money into it. Businesses are not going to create jobs or invest as long as they have the expense of higher Obamacare costs and higher costs for possible Cap and Trade legislation and higher taxes hanging over their heads. Obama can't create jobs (other than government jobs and he's created plenty of those for us to support) but he can create an environment that is friendly to private sector growth and he has done exactly the opposite. Until that changes, the unemployment rate will remain high and growth in GDP slow.

June 25 2010 at 1:56 PM Report abuse +9 rate up rate down Reply
ettu

It seems every adjustment made to prior statistics is made downward. Is this normal, or an attempt to fool somebody? We who live in the "real" world, and not in our State and Federal Gov't cushy confines, might not know the numbers, but we sure know what it feels like.

An article of great interest to all: Google froma harrop and click on her article about government pensions............it is an eye opener, folks.

June 25 2010 at 12:30 PM Report abuse +10 rate up rate down Reply
stheel4

With more than 4 million jobs lost since 2009 , is this really a suprize?

June 25 2010 at 12:12 PM Report abuse +17 rate up rate down Reply
doncrites

GDP Estimate for First Quarter Was Too High. Imagine that.

June 25 2010 at 11:52 AM Report abuse +18 rate up rate down Reply

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