The preliminary estimate of GDP growth was revised down this week from 3.5% at an annual rate to 2.8%.  While we'd clearly rather have the higher number, 2.8% is still pretty good compared with recent quarters.

What's behind the revision? New, better data indicate that personal consumption rose less than initially estimated.  Also, imports, which don't count towards U.S. GDP, were a larger share of the increase in consumption.  On the plus side though, exports rose more than the preliminary GDP report estimated.

While the increased imports mean a lower estimate of U.S. GDP, they can still be seen as good news for our trading partners.

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