Friday July 29, 2011 – 10:56 AM – GDP RESULTS

I had written that when the GDP report for 2Q/2011 was reported today that it might be surprisingly weak. It turns out I was not pessimistic enough.

GDP came in 1.3% versus forecasts of 1.8%.

But, just as importantly, there were large downward revision for the two prior quarters — 4Q/2010 down from 3.1% to 2.3% and 1Q/2011 from 1.9% to 0.4%!
I can’t ever remember having seen such large downward revisions.