WASHINGTON (Reuters) - The economy grew at a much slower pace than initially thought in the third quarter, restrained by weak business investment and a slightly more aggressive liquidation of inventories, according to data on Tuesday.
Growth was boosted by government stimulus programs, including the popular cash for clunkers and tax credit for first-time home buyers, and debate continues to rage over the sustainability of the recovery once government support wanes.
Business spending in the third quarter was weaker than the government had estimated last month. Business investment fell at a 5.9 percent rate instead of 4.1 percent, the department said.
A deeper than initially thought slump in the construction of nonresidential structures and stronger demand for imports, which overshadowed the growth in exports, held back growth in the third quarter, the report showed.
Tuesday, December 22, 2009
Revised Down yet again. It started at 3.5% growth revised down to 2.8% and now it's at 2.2%. Can we honestly believe anything this administration puts out?
Posted by traderrob at 4:57 AM