Dollars and Jens
Thursday, August 28, 2008
The "preliminary" revision of Q2 GDP is out:
|Fixed investment||-.15||-.97||-.86|| -.38||Net Exports||2.03||.94||.77||3.10|
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.