Thursday, December 22, 2011
Revised GDP figures - you win some, you lose some
Posted by David Smith at 09:40 AM
Category: Thoughts and responses

At first blush the revised third quarter gross domestic product figures were good news, with GDP growth over the quarter revised up from 0.5% to 0.6%. Dig slightly deeper, however, and the third quarter's gain is the second's loss - that has now been revised down from 0.1% to zero.

In the third quarter itself, output of the production industries rose by 0.2% (manufacturing 0.1%), the service sector rose by 0.7% and construction by 0.3%. GDP compared with a year earlier was up by a weak 0.5%, so no change there.

There was better news for business investment, up by 0.3% on the quarter and 4.3% on a year earlier. But the current account deficit in the third quarter, 15.2 billion, was the biggest on record and equivalent to 4% of GDP. The second quarter's tiny 2 billion deficit was revised up to 7.4 billion.

So a mixed bag - you win some, you lose some. The GDP figures are here.