Friday, January 27, 2006

1(%) out of 4 ain't good 

Fourth quarter GDP growth fell to 1.1% in the fourth quarter from 4.1% in the third. GDP from an expenditures approach consists of four items: consumption; investment; government expenditures; and net exports. Taking each one in turn with two numbers -- the contribution to growth in the fourth quarter, and in parentheses the third quarter contribution.
Folks will tell you that you shouldn't worry over a single data point, and some even want to average the previous two. But there's no way you can paint this as good news.