This is a great improvement considering some of the negative news of late. In addition, it is significantly better then 1Q11 at +.36% and 2Q11 at +1.34%!
My complaint on the GDP growth number is the inflation rate used by the government to attain this "real", or after inflation, growth number. The inflation rate used does not include food or energy cost increases, which are both up significantly. However, it does include housing costs which are down significantly. These few items artificially push the GDP growth number up.
I continue to suggest inflation is closer to 6%. If this more realistic inflation rate were used in the GDP growth rate the 3Q11 GDP would be closer to -1.02% versus the reported +2.46%.
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