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UPDATE: Despite some analysts chatter that we could see big upward revisions to last quarter’s q-o-q annualized GDP growth, the data confirmed earlier estimates: the economy grew at 3.0 per cent.Earlier measurements of core PCE and personal consumption were also confirmed.
Immediate investor chatter after the release indicates that this revision is being seen as a bit of a disappointment, despite the fact that most analysts polled by Bloomberg were believed the number was unlikely to change.
However, it appears that analysts are paying more attention to initial jobless claims, which came in higher than expected for the last week.
ORIGINAL: The final revision to 2011 fourth quarter GDP growth comes out in just a few moments.
According to previous estimates, the economy grew at a rate of 3.0 per cent in the final quarter of last year, and most analysts expect that number to stay the same this time around.
However, Nomura analysts wrote in recent a note that this revision could actually turn out to be major. They think we’ll see that number adjusted upwards to 3.5 per cent. In particular, they pointed out that previous revisions likely underestimated economic activity generated by the service sector.
We’ll also be paying a lot of attention to personal consumption and core PCE—major components of the GDP report.