Thursday, December 23, 2010

Moving On Up

The economy grew faster than previously reported in the third quarter, according to figures released by the Commerce Department yesterday. It's hardly a significant change: The initial report was that GDP increased by 2.5 percent, and now the government thinks it was actually 2.6 percent. That's the final revision for the GDP figure, so that's where the number will stay.

That revision wouldn't ordinarily have much impact - except that it has helped fuel the the idea that the growth of the American economy may be accelerating. The Wall Street Journal's survey of eight banks and economic research firms had earlier pegged fourth-quarter growth at 2.6 percent; now that number has been revised upward to 3.5 percent.

Those same entities are also upgrading their 2011 GDP outlook. Goldman Sachs, for one, recently revised its 2011 growth figure from 2.0 percent to 2.7 percent; JPMorgan Chase now has 2011 growth at 2.9 percent. In any case, it looks like the future has just become a tick brighter.

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