Economic Growth Revised Down Unexpectedly In Q3 --Deficit Almost Doubles

[Realistbear]

http://uk.finance.yahoo.com/news/Economic-growth-revised-reuters_molt-1651147754.html?x=0

Economic growth revised down unexpectedly in Q3

9:31, Wednesday 22 December 2010

LONDON (Reuters) - The economy grew less quickly than previously thought in the third quarter, and growth in the second quarter was also revised down, official data showed on Wednesday.

The Office for National Statistics said GDP grew 0.7 percent on the quarter, down from the 0.8 percent previously estimated. On the year, growth was revised down to 2.7 percent from 2.8 percent. Economists had expected growth to be unrevised at 0.8 percent on the quarter and 2.8 percent on the year.

The ONS blamed the revision on weaker outturns for production industries, construction and business services and finance.

Growth in the second quarter was also revised down to 1.1 percent from the 1.2 percent previously reported following data which showed the construction sector grew less quickly than initially thought.

The figures suggest Britain's recovery is less robust than some hoped and will reinforce fears of a sharp slowdown early next year when public spending cuts increasingly start to bite.

Balance of payments data released at the same time showed Britain's deficit with the rest of the world widened to 9.568 billion pounds in the third quarter from 5.22 billion in the second.

Economists had expected the current account gap to widen to 8.55 billion pounds.

So much bad news and all so unexpected. What do the loons who come up with all the bullish data think will happen after the biggest bust in centuries? More boom and growth?

The Koalishon need growth to make their austerity plans feasible. Oh well, back to the drawing board.

2011 should be a real dilly of a year, especially for house prices. Might have to revise my -15% down in 2011.

Edited December 22, 2010 by Realistbear

[Si1]

The Koalishon need growth to make their austerity plans feasible. Oh well, back to the drawing board.

the plan B is already a bit of an unadmitted secret - maintaint public sector cuts in order to achieve reduction in public sector, but additionally cut taxes to accomodate economic weakness, most probably in business taxes

th government will do this, but will play a game of chicken first to see if they can scare the private sector into growth - ergo if people have nothing to lose they become entrepreneurs...you would hope

[Realistbear]

the plan B is already a bit of an unadmitted secret - maintaint public sector cuts in order to achieve reduction in public sector, but additionally cut taxes to accomodate economic weakness, most probably in business taxes

th government will do this, but will play a game of chicken first to see if they can scare the private sector into growth - ergo if people have nothing to lose they become entrepreneurs...you would hope

And we all know what defines "entrepreneurship" in this HPI-obsessed nation. BTL. :angry:

[MrFlibble]

The figures suggest Britain's recovery is less robust than some hoped and will reinforce fears of a sharp slowdown early next year when public spending cuts increasingly start to bite.

A perfect storm is brewing... I still have big doubts the ConDems will have the balls to carry out these cuts myself, but it makes little odds, cuts or no cuts, the country is FUBAR.

Edited December 22, 2010 by MrFlibble

[MinceBalls]

A perfect storm is brewing... I still have big doubts the ConDems will have the balls to carry out these cuts myself, but it makes little odds, cuts or no cuts, the country is FUBAR.

These are the same cuts that result in spending MORE?

[LuckyOne]

Part of the worsening in the trade deficit is being blamed on banker bashing.

http://blogs.telegraph.co.uk/finance/ianmcowie/100009122/record-10bn-drop-in-exports-blamed-on-banker-bashing/

The real problem is that we have structured our economy expecting an unsustainable banking system to fund a material portion of it forever.

In my view, that was silly. It is also silly to push the good (and, unpopularly I think that there are some) parts of the system offshore.

[Si1]

And we all know what defines "entrepreneurship" in this HPI-obsessed nation. BTL. :angry:

I think that's why a bit of polico-economic brinksmanship might shake out the doers (real buisiness) rather than the chancers (BTL)

[Si1]

Part of the worsening in the trade deficit is being blamed on banker bashing.

http://blogs.telegra...banker-bashing/

The real problem is that we have structured our economy expecting an unsustainable banking system to fund a material portion of it forever.

In my view, that was silly. It is also silly to push the good (and, unpopularly I think that there are some) parts of the system offshore.

I imagine there's a 'goldilocks' level to be reached - it still seems sensible to be less reliant of financial service imports in the long run, going off the Roubini economic-multiple-redundancy thesis

[Captain Cavey]

Same old trick is it? Revise down previous figures so that the forthcoming QoQ results will be relatively slightly less “unexpectedly” bad.

Shameless charlatans

[Soul Reaver]

http://uk.finance.yahoo.com/news/Economic-growth-revised-reuters_molt-1651147754.html?x=0

Economic growth revised down unexpectedly in Q3

9:31, Wednesday 22 December 2010

LONDON (Reuters) - The economy grew less quickly than previously thought in the third quarter, and growth in the second quarter was also revised down, official data showed on Wednesday.

The Office for National Statistics said GDP grew 0.7 percent on the quarter, down from the 0.8 percent previously estimated. On the year, growth was revised down to 2.7 percent from 2.8 percent. Economists had expected growth to be unrevised at 0.8 percent on the quarter and 2.8 percent on the year.

The ONS blamed the revision on weaker outturns for production industries, construction and business services and finance.

Growth in the second quarter was also revised down to 1.1 percent from the 1.2 percent previously reported following data which showed the construction sector grew less quickly than initially thought.

The figures suggest Britain's recovery is less robust than some hoped and will reinforce fears of a sharp slowdown early next year when public spending cuts increasingly start to bite.

Balance of payments data released at the same time showed Britain's deficit with the rest of the world widened to 9.568 billion pounds in the third quarter from 5.22 billion in the second.

Economists had expected the current account gap to widen to 8.55 billion pounds.

So much bad news and all so unexpected. What do the loons who come up with all the bullish data think will happen after the biggest bust in centuries? More boom and growth?

The Koalishon need growth to make their austerity plans feasible. Oh well, back to the drawing board.

2011 should be a real dilly of a year, especially for house prices. Might have to revise my -15% down in 2011.

I should have become an economist. If you get it wrong you just say it was unexpected and you could not have forseen the events.

[LuckyOne]

I imagine there's a 'goldilocks' level to be reached - it still seems sensible to be less reliant of financial service imports in the long run, going off the Roubini economic-multiple-redundancy thesis

Goldilocks is much smaller than the current Jolly Green Giant ....

I do like the idea that you can gain a valuable diversification effect if no single segment of the economy gets to be too large.

[interestrateripoff]

These are the same cuts that result in spending MORE?

In an austere way.

I think you need to attend your local re-education centre.