In their second estimate of the third quarter 2011 GDP, the Bureau of Economic Analysis (BEA) revised the headline growth number downward by over a half percent to an annualized growth rate of 2.01%. The real story within the data, however, was that compared to last month's "Advance" estimate the new report showed substantially weaker commercial fixed investments while the draw-down of inventory levels was more intense -- putting the new numbers for third quarter aggregate commercial GDP into net contraction. In general consumer contributions were slightly weaker, while a substantial downward revision in imports somewhat softened the bad news in the headline number. Meanwhile, the public's per-capita disposable income continued to shrink -- but at a newly revised and sharply greater rate.
Read the rest at Consumer Metrics Institute
Third Quarter GDP Revised Downward
Again, it's the demand, stupid.