Tuesday, December 22, 2009

Rounding Error

The Commerce Department has again revised downward the GDP growth:

The Commerce Department reported Tuesday that the economy grew at a 2.2 percent pace in the July-to-September quarter, slower than the 2.8 percent growth rate estimated just a month ago. Economists were predicting that figure wouldn't be revised in the government's final estimate on third-quarter GDP.

Hot Air notes this:

Most troubling is Commerce’s poor performance in analyzing economic conditions.  If they’re so incompetent as to miss this figure by 37% (1.3 from 3.5 is slightly over 37%), then clearly they need some fresh talent.  If they got pressured into stating overly cheerful numbers, it’s something else entirely.

Once is a mistake, twice is a coincidence.  Three times is enemy action.