DALLAS-The Commerce Department revised downward its measure for economic growth during the third quarter from +2.8% to +2.2% as the result of weaker business spending and slower inventory investment than previously estimated, noted Brian Hague, CEO of investment services CUSO CNBS, in a new analysis.
"This final measure for the third quarter pales in comparison with Commerce's initial estimate two months ago of +3.5%," said Hague. "Although many might consider this to be a slight setback, it does set the stage for statistical improvements over the next few quarters, particularly in production and spending.
"The Q4 growth rate will most likely be higher in that consumption appears to be rising and inventories appear o have turned higher," he continued. "Projections for Q4, which had been around a +3% annual rate, are now seeing upward revisions as high as +3.5% to +4.5%."
