NEW YORK (CNNfn) - Inflation watchers got some good news Friday as the Commerce Department revised its final version of the gross domestic product downward.
The third and final revision showed a 3.3 percent gain for the second quarter gross domestic product, its smallest rise since 1993. Economists had forecast it to remain unchanged at 3.6 percent, or possibly rise slightly.
The GDP measures the value of all goods and services produced within the United States and is one of the indicators the Federal Reserve uses to set interest rate policy.
However, the final revision of the GDP is often seen by economists and Wall Street as too old to be useful in gauging the current pace of economic growth.
Greg Jones, chief economist at briefing.com, said everyone knows the economy is strong and that Friday's lower GDP figures don't lessen the chance of inflation, which he sees as imminent.
"I think it's just a matter of time before we do see inflation turn the corner," said Jones.
"We're seeing an unemployment rate which continues to fall, hourly earnings rising. I think that's just an indication of the pressures building in the economy."
The bond market reacted calmly to the figures, with the 30-year Treasury bonds up 11/32, pushing the yield down to 6.37 percent.
Final sales figures appear to be the main factor in the lower GDP figure. They showed a 2.5 percent increase from the previous figure of a 2.8 percent increase.
The implicit price deflator, which measures the price pressures occurring under the GDP figures, was revised slightly upwards to indicate a 1.8 percent increase from an earlier 1.5 percent gain.
Consumer spending in the second quarter was up 0.9 percent, Commerce said.
-- Randy Schultz