The Gdp revision

Jim Hamilton reviews the revision and doesn't seem that worried, or at least more worried than was.

The Bureau of Economic Analysis reported today that U.S. real GDP grew at a 2.2%annual rate in the fourth quarter of last year, rather than the 3.5% originally reported. Of the 1.3% lost output growth, about half is due to a downward revision of the end-of-quarter inventories.

So, although a revision of reported GDP growth from 3.5% to 2.2% sounds worrisome, the details don't bother me that much. 2.2% is closer to what I was expecting for 2006:Q4 anyway, so essentially all this does is put us back where many of us thought we were in November.