Second Quarter GDP Revised Downwards
The Bureau of Economic Analysis is revising downwards its estimate for how much the economy grew in the second quarter from 3.3% to 2.8%. This is not good news in the middle of a financial crisis, needless to say.
The GDP estimates released today are based on more complete source data than were available for the preliminary estimates issued last month. In the preliminary estimates, the increase in real GDP was 3.3 percent (see “Revisions” on page 3).
And, lets try to keep things in perspective, 2.8% growth is not bad and it means that it is unlikely we are currently in a recession.