Q2 GDP Slashed to 1.3%

0 Posted by - September 27, 2012 - Career & Business, Economics, Money

4628181555 63f1dace16 300x199 Q2 GDP Slashed to 1.3%The third reading on Q2 GDP just came out and the report was ugly.

The headline growth number was revised down to 1.3 percent on an annualized basis.

Economists expected the number to be unchanged at 1.7 percent.

“As we recently noted, you’ll need to watch the rear-view mirror to see the recession come into focus,” wrote ECRI’s Lakshman Achuthan in an email to Business Insider.

“The “third” estimate of the second-quarter percent change in real GDP is 0.4 percentage point, or $16.0 billion, less than the “second” estimate issued last month, primarily reflecting downward revisions to private inventory investment, to personal consumption expenditures, and to exports,” wrote the Bureau of Economic Analysis.

The personal consumption component was revised down to 1.5 percent.  Economists were expecting it to be unchanged at 1.7 percent.

CONTINUED at Business Insider.

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