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 with the previous revision.  Today’s number came in at 3.0%.  CNBC was talking up expectations on Wednesday and Dow Jones had a consensus estimate listed of 3.2%.

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