Friday, July 31, 2009

Q2 GDP Closer to -5.8% Accounting for Revisions

Update:

My initial post stated that the decline was closer to 2.3% (rather than the announced 1%) as there were massive revisions to old GDP prints. Looking at GDP data below, old figures were revised down 1.3% on a cumulative basis from Q2 2007 through last quarter, but I forgot to turn the quarter over quarter change into a 12-month figure. Thus, the change from unrevised Q1 to Q2 is not a 2.3% annualized decline, but more like a 5.8% annualized decline.



Yikes...

Source: BEA