BEA Revises Down Q4 GDP Estimate
The revised estimate of the U.S. Bureau of Economic Analysis (BEA) for Q4 2010 GDP indicates that the economy grew at an annualized rate of 2.8% q/q, short of the advance estimate of 3.2% q/q. This left the 2010 growth rate at 2.8%.
Government spending saw a sharp downward revision to an estimated contraction of 1.5%, compared to the advance estimate of a 0.6% decline, as the estimate for state and local government spending growth was revised from -0.9% to -2.4%. The numbers highlight the drag on growth from state and local government spending cutbacks.[...]