December 22, 2010

Increase in GDP estimates signals good news for recovery

Bruce Yandle

Distinguished Adjunct Fellow
Summary

The GDP estimate for the 3rd quarter growth released today is higher than the previous estimates, which signals good news for economic recovery.

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The GDP estimate for the 3rd quarter growth released today is higher than the previous estimates, which signals good news for economic recovery.

The growth number has risen with each revision of the estimated numbers.  As they’ve gotten more complete data, the economic outlook is brightening.  This has a positive tilt - instead of revising down, it was revised up.

One of the brightest parts of the news is where the latest data is coming from.  The last data collected is often from small businesses, and with that interpretation, it speaks well for the economic recovery. 

Additionally, the increase in consumer spending marks a positive move in the recovery.The consumers are taking some of the load off the manufacturing industry that has been pulling the GDP locomotive for most of the year.