Buyers not surprised at GDP downgrade
Commerce Department's new estimate was expected
Paul Teague -- Purchasing, 11/24/2009 2:48:07 PM
The U.S. Commerce Department today revised downward its previous estimate of gross domestic product (GDP) growth for the third quarter. The Department's Bureau of Economic Analysis said GDP grew 2.8% rather than the 3.5% it previously estimated. Two buyers contacted by Purchasing said they were not surprised.
Bruce Robinson, purchasing specialist at FujiFilm, said he expected GDP to be lower when more solid data was released. "Previous estimates are just that, estimates," he told Purchasing.com. "If not for respectable contributions from cash for clunkers and first-time new home buyers, the numbers would be worse." He expects fourth quarter 2009 and first quarter 2010 to be down too, though he said his company is beginning to see some light.
Daniel Edwards of Graybar said he too thought the original estimate of 3.5% was optimistic. "With unemployment where it is, I feel consumers are going to be more cautious about spending in the near future."
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