GDP Revisions… When Poor Growth Never Looked So Good
The revision for Gross Domestic Product is out and investors need to keep in mind that this is the third look at the fourth quarter GDP for 2011. Bloomberg had a consensus target of 3.0% growth and that was flat…
If you include the PCE Price Index, GDP was really up 1.2% according to the Commerce Department. For all of 2011 that was 1.7%.
While this is being called a disappointment, this was the final revision and it should be fully reflected into the markets by now as the data is nearly 90-days old and covers the period from 90 to 180 days ago.
It is impossible to call this impressive growth. Still, it is above the red-line and that keeps the recession mongers at bay for another couple of quarters at a minimum.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
