GDP Numbers Continue To Be Nonsense
It almost makes you wonder whether the “government” is doing this on purpose… reporting large GDP numbers then revising them lower months later when nobody is paying as much attention. In the recent quarter, GDP was originally at 3.5%. It was then revised to 2.7%. Today, they revised it even lower to 2.2%. What in the heck is going on?
2.2% is very different than 3.5% and represents a very, very large miss. I’m not sure how they are able to get it so wrong.
I expect the exact same scenario to play out for 4th quarter GDP numbers that will be released in the near future. The market will rally on a 4-4.5% GDP growth number, then it will be revised lower towards 3%.
You’re probably better off ignoring GDP reports.