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SHRINKAGE

GDP Growth Revised Down

Third quarter grew 2.8 percent, not 3.5 percent.

The Commerce Department reported Tuesday that the economy expanded at a 2.8 percent rate in the third quarter, slower than the government's original estimate of 3.5 percent, and that consumer spending grew at 2.9 percent. The smaller-than-expected GDP growth figure is nonetheless the strongest third-quarter growth in two years, according to the government. Corporate profits, spurred in part by large job cuts, increased by 11 percent in the third quarter, the fastest rate since 2004, but economists expect joblessness to remain high through next year, with unemployment figures above 10 percent.

Read it at Bloomberg

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