Q3 GDP Revised Higher As Inventories Surge Again, Personal Consumption Disappoints | Zero Hedge:
"So what drove the jump?
The "old faithful" plug to "growth" inventories, which instead of dropping at an annualized 1.44% as in the original release, declined just 0.59% annualized, meaning that instead of contributing $62.2 billion, inventories jumped a material $100.6 billion, confirming that the inventory liquidation is still to take place, and as a result we now expect substantial downward revisions to Q4 GDP in the coming hours as Wall Street has no choice but to assume the inventory reduction will now be shifted to Q4."
The punchline: if it wasn't for the $40 billion surge in inventories shown above, Q3 GDP would be 1.2%!
'via Blog this'
"So what drove the jump?
The "old faithful" plug to "growth" inventories, which instead of dropping at an annualized 1.44% as in the original release, declined just 0.59% annualized, meaning that instead of contributing $62.2 billion, inventories jumped a material $100.6 billion, confirming that the inventory liquidation is still to take place, and as a result we now expect substantial downward revisions to Q4 GDP in the coming hours as Wall Street has no choice but to assume the inventory reduction will now be shifted to Q4."
The punchline: if it wasn't for the $40 billion surge in inventories shown above, Q3 GDP would be 1.2%!
'via Blog this'
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