WASHINGTON (Reuters) - The U.S. economy grew at a slightly slower pace than previously estimated in the third quarter, but weak inventory accumulation amid sturdy consumer spending strengthened views output would pick up in the current quarter.
This shouldn't be surprising given the only sector that appears to be improving is consumer spending, which appears to be driven by debt financing.
It shouldn't be surprising, moving forward, to see further downward revisions of actual growth and forecast growth. Europe is likely to weigh heavily on the US economy in the coming quarters. Better to be slightly skeptical than overly optimistic.
