GDP growth at 2.6%, below forecast, but at least we're positive

Shouldn't we be optimistic?  Just 3 months ago, we were forecast 2.5% GDP growth for this quarter. 

But the problem is we have been seeing strong numbers for manufacturing and consequently analysts have been increasing their growth forecast to 3-3.5%.  Coming in at 2.6% definitely dissappoints. 

Real GDP increased at an annual rate of 2.6% in the third quarter of 2010, according to an estimate released by the BEA (Bureau of Economic Analysis). In the second quarter, real GDP increased 1.7 percent.
Via BEA:
The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures, private inventory investment, nonresidential fixed investment,exports, and federal government spending that were partly offset by a negative contribution from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
Year-on-year, real GDP in the second quarter is up 3.2 percent, compared 3.0 percent in the second quarter.

On the inflation front, the GDP price index's growth rate for the third quarter was nudged down to 2.1 percent annualized from the prior estimate of 2.3 percent. The consensus forecast was for 2.3 percent.

Source Bloomberg


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