Friday, February 26, 2010

Q4 GDP Revised Higher on Inventory Rebuild

Rather than "rebuild", make that a smaller inventory decline (inventories were revised down to a $20.4 billion decline in Q4 from a $156.5 billion decline in Q3).

Other revisions include:

  • A decline in consumption, but a large increase in imports (thus we are consuming MUCH less in the way of goods produced in the U.S.)
  • An increase in business investment (a great sign)
  • An increase in exports (likely a driver of the bottoming we've seen in manufacturing)
  • A decrease in state and local consumption (a growing trend?)

Q3 vs Q4 GDP (Contributions)

Q3 vs Q4 GDP (Change in Contributions)

Source: BEA

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