US growth estimate in surprise downward revision (BBC)

[eppur_se_muova]

The US Department of Commerce has unexpectedly cut its estimate of fourth-quarter growth to an annualised 2.8%, from 3.2% previously.

Analysts had instead expected the figure to be revised up slightly to 3.3%.

Lower government spending than previously estimated was the main reason for the downward revision.

Economic growth for the whole of 2010 was also revised down slightly, from 2.9% to 2.8%.

As well as lower state and local government spending during the final three months of last year, consumer spending grew at a slower rate than previously estimated.
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more: http://www.bbc.co.uk/news/business-12580617

[Newest Reality]

1. Keep lowering that government spending as the

results are trickling down. ;)

Damn consumers aren't spending enough! They are so stingy these days. ;)

[OHdem10]

2. I read that all the Layoffs in the States and likewise the Cuts, have

contributed to this drop in growth. Jobs lost.

[prairierose]

3. In a depression, when govt spending and social program spending...

go down, there is less money going into the economy and it contracts. This is how an economy works in reality and not the fantasy of tax cuts for the rich trickling down or the rich creating jobs with all of those tax cuts.