Informed Speculation

…but still somewhat anemic:

Business growth slowed to a 2.2 percent pace in the late summer, a much better performance than anticipated and an encouraging sign that the housing slump hasn’t been too much of a drag on the economy.

The upgraded reading on gross domestic product, released by the Commerce Department Wednesday, was considerably stronger than the 1.6 percent growth rate for the July-to-September quarter that had been estimated a month ago. That pace had been the worst in more than three years.

…The new estimate, which was stronger than the 1.8 percent pace that economists had forecast, nevertheless marked the slowest pace of growth since the end of last year when the economy was reeling from the blows of the Gulf Coast hurricanes. The biggest drag on third- quarter growth: the cooldown in the once-sizzling housing sector.

Investment in home building was cut by the largest amount in 15 years in the third quarter.

The upgraded reading on third-quarter GDP largely reflected stronger inventory building by businesses and a trade deficit that was less of a weight on economic growth than initially thought.

We’ll be keeping a close eye on economic affairs around here as we try to fight off a new wave of economic populism…