Economy's bad....no, no, no economy's great!

Growth revised lower, inflation higher
By Rex Nutting, MarketWatch
Last Update: 11:43 AM ET July 29, 2005
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WASHINGTON (MarketWatch) - The U.S. economy was weaker over the past three years than previously estimated, while inflation was moderately higher, the Commerce Department said Friday.

Instead of growing at a 3.1% annual rate in the three years from 2002 through 2004, the economy actually grew at a 2.8% pace, the government said.

The government also reported Friday that gross domestic product increased at a 3.4% in the second quarter of 2005. See full story.

A downward revision for investment in information technology equipment and software was the major cause of the weaker growth estimate.

http://www.marketwatch.com/news/story.asp?guid=%7BE5F40DB7%2D5B66%2D4DF9%2DBE78%2DD3B447D04F5B%7D&siteid=mktw&dist=


CONTRAST AND COMPARE WITH



U.S. economy grew solidly in second quarter
GDP grows at 3.4 percent annual rate, down slightly from first quarter

Updated: 10:22 a.m. ET July 29, 2005
WASHINGTON - The economy clocked in at a robust 3.4 percent annual growth rate in the second quarter, fresh evidence the country’s business climate is sunny despite surging energy costs.

The solid increase in the gross domestic product for the April-to-June quarter, reported by the Commerce Department on Friday, came on the heels of a larger 3.8 percent growth rate in the opening quarter of this year.

http://www.msnbc.msn.com/id/8752439/