Economy grows slowly in the third quarter(Read article summary)
The real GDP increased 2 percent from the second quarter of 2011, and only 1.51 percent on a year-over-year basis
Today, the Bureau of Economic Analysis (BEA) released their second "estimate" of the Q3 2011 GDP report showing that the economy continued to expand at a notably slower pace than originally estimated with real GDP increasing at an annualized rate of just 2.0% from Q2 2011.
On a year-over-year basis real GDP increased 1.51% while the quarter-to-quarter non-annualized percent change was 0.50%.
The latest quarterly results indicate that the most notable source of weakness in the economy came from the change in private inventories component resulting in an overall 0.9% decline to gross private domestic investment and government expenditures with non-defense spending declining 3.8% while state and local spending declined declined by 1.4%.
Fixed investment purportedly made notable contributions to Q3 GDP with non-residential fixed investment increasing 14.8% from Q2 2011 while residential fixed investment increased 1.6% over the same period.
Personal consumption expenditures also increased notably increasing 2.3% from Q2 2011.
Keep in mind that these results are likely very poorly estimated and are sure to be revised notably in following quarters and even years to come.