The 5.9% in line report (seasonally adjusted annualized pace) up from the original 5.7% report. Don’t be surprised if this gets revised down, like Q3 was . . .
The revision shows final sales in the US were weaker than originally reported last month. Business investments and exports were higher, but Inventories were bigger (meaning, the reduction of inventory backlog was also slower). Nearly two thirds of GDP growth for Q4were changes in inventories — not final sales.
Rex Nutting points out that even with the big Q4 GDP, U.S. GDP was down 2.4% in 2009 — the worst showing since 1946 (down 10.9%). Rex also notes “In 2009, business investment fell the most since 1942, while imports fell the most since 1946.”
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