The Commerce Department said yesterday that the nation’s economy grew at a seasonally adjusted annualized rate of 2.2% in the third quarter, up from its initial estimate of 1.6%.
The upward revision, which reflected a stronger-than-expected buildup in business inventories and slower-than-expected import growth, cheered investors, helping send the Dow Jones Industrial Average up 90.28 points to 12226.73.
Gerena-Morales, Rafael. Housing Slump Likely to Take Toll on 4th-Quarter Growth. The Wall Street Journal 2006 Nov 30: A2.
These are not the types of revisions I would expect to result in a market rally. Rising inventories seem to portend reduced future production and slowing import growth may indicate reduced consumption, both potential signals of a slowing economy.
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