NEWS HEADLINES FOR GDP
--US Q3 GDP revised to -1.3% from -1.1%
--US Q3 GDP final sales revised to -0.3% from -0.2%
--US Q3 GDP consumer spending revised to +1.0% from +1.1%
--US GDP weakest since Q1 1991
--US Q3 GDP government spending revised to +0.3% from +0.8%
--US Q3 corporate profits revised to -6.8% from -7.1%
--US Q3 GDP capital spending revised to -8.5% from -9.3%
--US Q3 GDP PCE price index revised -0.2% from -0.3
--US Q3 GDP core PCE revised +0.5% from +0.4
--US Q3 GDP price deflator remained +2.2%
--US net exports revised to cut 0.3 pts off Q3 GDP from 0.2
--US net invty revised to cut 0.81 pts off Q3 GDP from 0.75

By Sandi Alexander
Washington, Dec. 21 (FWN) The U.S. economy inched down 1.3% to a slightly weaker position for the revised final third quarter, the Commerce Department reported on Friday. Third quarter GDP was originally reported as down 1.1%.
* * * Analysts anticipated GDP would remain down 1.1% for the third quarter. However, decreases in construction by state and local governments forced GDP to step down 0.2 percentage points, the government said. The economy was at its weakest point since the first quarter in 1991, when GDP contracted 2.0%.
Consumer spending, responsible for two-thirds of the economic output, revised to up 1.0% in the third quarter from up 1.1%. Meanwhile, government spending posted an increase of 0.3% from up 0.8%.
Capital spending, central to the economy in recent years due to its productivity-boosting effects, revised upwardly to a 8.5% loss in the third quarter, initially reported as down 9.3%.
Final sales in the reported quarter, which measures GDP excluding inventories, fell a revised 0.3% from down 0.2%.
Business spending on structures increased to down 7.5% in the third quarter revised data, from down 9.3%, while construction investment upwardly revised to down 5.7%, initially reported as a 6.3% drop. Meanwhile, total inventories revised down the third quarter, detracting 0.27 percentage points from growth, previously reported as a deduction of 0.20 points. Net exports revised down, cutting 0.81 percentage points from third quarter growth, initially reducing it by 0.75 points.
INFLATION The report contained some good news regarding inflation in the third quarter. The GDP price index was remained up 2.2%.

PERSONAL CONSUMPTION PRICE INDEX
The personal consumption price index decreased 0.2% in the third quarter revised data, slightly above its previous reporting of a 0.3% decrease. Excluding food and energy, the core PCE price index revised up 0.5%, from the 0.4% increase initially released for the third quarter.
WHAT WAS EXPECTED
The Futures World News survey of economists' estimates for the revised third quarter GDP ranged from down 1.4% to down 1.1%. The final sales projections ranged from down 0.4% to down 0.3% with the consensus at down 0.3%. The PCE index was expected to fall 0.3% and the price deflator was pegged up 2.2%.
CORPORATE PROFITS AFTER TAXES
U.S. corporate profits after taxes for the third quarter upwardly revised down 6.8% to $475.6 billion. Profits were previously reported as down 7.1%.