How Much Illusion in GDP? What You See Is Not What You Get – 10.28.17

 

  • Oh, the revisions.
  • The US economy, as measured by “real” GDP (adjusted for a version of inflation) grew 0.74% in the third quarter, compared to the prior quarter. That was a tad slower than the 0.76% growth in Q2, but up from the 0.31% growth in Q1.
  •   GDP was up 2.3% from a year ago.
  • To confuse things further, in the US, we cling to the somewhat perplexing habit of expressing GDP as an “annualized” rate, which takes the quarterly growth rate (0.74%) and projects it over four quarters. This produced the annualized rate of 2.99%, or as we read this morning all over the media, “3.0%.”

Read more at:How Much Illusion in GDP? What You See Is Not What You Get

Source: wolfstreet.com

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