The Last "Great" U.S. GDP Is Now Revised Down From 3.2% to 2.8%

Remember last time U,.S. GDP numbers were releases with great fanfare showing a growth of 3.2%? They have now been quietly revised down to 2.8%, and that is not even the final revision. This also gives the chance of the next GDP number being higher, since it starts from  a lower base. And the process can then continue.

It turns out that there were deeper spending cuts by both state and local governments in Q4 2010. The revised estimate by the Commerce Department showed that state and local governments cut spending at a 2.4%.
Consumers also spent less than what was originally reported, rising 4.1%, versus the previous number of estimate of 4.4%.

For 2010, the economy grew 2.8%, the highest in 5 years (although 5 lousy years).