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Less Robust Growth

11:37 AM MST | December 19, 2011 | —Arnold Pearlman

The economy grew at a 2% annual rate in the third quarter, ahead of the 1.3% rate in the second quarter, but below the initial estimate of 2.5% for the most recent period. Although this is a fairly significant downward revision, it is actually less dire than the updated GDP number indicates, as most of the decrease was tied to a decline in inventories and not production output. Inventories were originally thought to have increased by $5 billion, and now there is an estimate of a $7 billion decline. Final sales of domestically produced goods and services rose a...

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