Friday, February 27, 2009
The Bureau of Economic Analysis releases a series of three reports when estimating quarterly GDP:
Each subsequent report, in theory, provides a better estimate of production than the previous one. Today, the preliminary report for 4th Q 2008 was released. The report estimated a 6.2% DROP in GDP, the advance report contained an estimate of -3.8%. The durable goods component dropped a whopping 22.1% (annualized rate) in the quarter.
Real GDP is now back to mid 2007 levels. I still think that the economy will shrink to 2005 levels, so we have experienced 20% - 25% of the pain so far.....
Posted by MK at 10:24 AM