Fourth Quarter GDP Revised Down to 2.2%

Published on:
28 February 2007 at 04:47 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00008536-fourth-quarter-gdp-revised-down-to-22/

It’s up, then down, then up again before heading <i>way</i> down, then middling for awhile before going either up or down again. It’s the U.S. economy: otherwise know as Chinatown.

Q4 numbers were given an artificial boost when first reported. Upon further reflection, government data now show that the economy has grown at a rate of less than 3 percent for three quarters in a row.

Consumer spending isn’t to blame. That’s remained healthy. What has slowed is the housing market. Add to that a decrease in investments into businesses and inventories and hello, downturn.

You can read MarketWatch’s full rundown of the story, including the government’s report, here.