by Bill McBride on 10/29/2010 08:30:00 AM
Friday, October 29, 2010
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.0 percent in the third quarter of 2010, (that is, from the second quarter to the third quarter), according to the "advance" estimate released by the Bureau of Economic Analysis.Click on graph for larger image in new window.
This graph shows the quarterly GDP growth (at an annual rate) for the last 30 years. The dashed line is the median growth rate of 3.05%. The current recovery is very weak - the 2nd half slowdown continues.
A few key numbers:
Without the boost in inventories, GDP would have been barely positive in Q3.
This was a little stronger than expected, and PCE will probably slow over the next couple of quarters.
As expected, residential investment declined sharply after the Q2 tax credit boost.
Overall this was a weak report and will not derail QE2 next wednesday (further easing from the Fed).
Posted by Bill McBride on 10/29/2010 08:30:00 AM