Q4 GDP Growth Revised from 2.8% to 3.1%

The Commerce Department reported that, in the third and final estimate for the fourth quarter of 2010, the U.S. economy grew at a seasonally adjusted annual rate of 3.1 percent, up from the prior estimate of 2.8 percent.The upward revision was due mostly to higher business investment and a smaller inventory build.

source

Q4 Real GDP Growth revised up to 3.1%

source

4th Quarter 2010: Revised Down to 2.8%

source

According to the Bureau of Economic Analysis (BEA), real GDP is now slightly above the pre-recession peak. Real GDP (in 2005 dollars) was at $13,382.6 billion in Q4, just 0.14% above the $13,363.5 billion in Q4 2007.

However industrial production is still 5.8% below the pre-recession peak, and it will probably be some time before industrial production returns to pre-recession levels.

Payroll employment is still 5.6% below the pre-recession peak. And even with slightly above trend GDP growth in 2011, payroll employment growth will probably only recover slowly. Payroll employment is still 7.7 million below the pre-recession peak, and if the the U.S. adds 2.5 million payroll jobs per year over the next 3 years (my current forecast is 2.4 million private sector jobs this year), it would take 3+ years to return to the pre-recession peak. And that doesn't include population growth!

This graph shows real personal income less transfer payments as a percent of the previous peak.This has been slow to recover - and is still 4.3% below the previous peak.

source

4th Quarter GDP: 3.2%

For all of 2010, the economy expanded 2.9 percent, up from a 2.6 percent contraction in 2009, and the best performance since 2005 when growth registered 3.2 percent.

source