The final revision to Q2 2012 GDP was a disaster. The headline of 1.26% from a prior revision of 1.54% to the internals of the report, there is no way to sugarcoat it. Not only is the economy at stall speed but plunging fast.
It’s very important to remember one simple truth. The Bureau of Economic Analysis (BEA) often takes 6 to 12 months before their final GDP revision will reflect recession. It’s also important to remember, as discussed many times on this site, how the price deflator seldom reflects inflationary reality. The simple underreporting of inflation through the price deflator has the ability to inflate growth.