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More on Reinvestment Phase

By Kevin Kastner, Sara Haire and Holly Stokes
     WASHINGTON (MNI) - The following are the key points from the third 
estimate of third quarter GDP data released Thursday by the Bureau of 
Economic Analysis: 
     - A small downward revision to 3Q GDP (+3.2% vs prev +3.3%) does 
not alter the picture of strong growth over the last two quarters.
     - The downward revision to GDP was due to softer PCE growth, 
smaller inventory growth, and a slightly wider trade gap. These were 
offset by strong government spending and a smaller drop in residential 
     - GDI +2.0% vs +2.5% in prev estimate and +2.3% in 2Q, putting the 
GDP/GDI average at +2.6% vs +2.9 in prev estimate and +2.7% in 2Q. This 
puts the alternative measure of growth at odds with the small 
acceleration in GDP from 2Q. 
     - The price measures were generally unrevised, with the GDP price 
index still +2.1%, but the closely watched core PCE price measure rev 
down to +1.3% vs prev +1.4%, The y/y rate remained at +1.4%, down from 
+1.5% in 2Q. 
     - Real final sales were revised down to +2.4% vs +2.5% in second 
estimate, reflecting the downward adjustment to PCE growth.
     ** MNI Washington Bureau: 202-371-2121 **