Dollars and Jens
Thursday, August 28, 2008
The "preliminary" revision of Q2 GDP is out:
4.8% -.2% .9%3.3%
Consumption 1.44  .67  .61 1.24
Inventories .69 -.96 -.02-1.44
Fixed investment-.15 -.97 -.86 -.38
Net Exports2.03.94.773.10
Government Spending.

The headline rate has been revised up 1.4 percentage points, to a rate that corresponds at least to the economy's full potential. Half a point comes from an inventory draw-down that is reckoned as not quite as dramatic as it previously was, but an even bigger chunk comes from an even-more-stunning-than-thought change in the balance of trade. (Cf. last month's report.)

Interestingly, the nominal trade deficit was still up very slightly, presumably because the prices of imports — in particular, one really big import — were significantly higher in the second quarter than the first, while any price change in exports was less dramatic.

Update: Gross Domestic Income, which in principle should be the same as GDP, has been weaker than GDP.

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