While the baby sleeps, the blogger blogs...
ON FRIDAY, the Bureau of Economic Analysis revised its estimate of fourth quarter output. The initial number, a 5.7% annual rate of expansion, was actually moved upward to 5.9%. But a closer look at the changes within the categories of growth revealed a more complicated and downbeat picture. Here's a nice chart summarising the information, from Calculated Risk:AdvanceSecond Estimate GDP5.7%5.9% PCE2.0%1.7% Residential Investment5.7%5.0% Structures-15.4%-13.9% Equipment & Software13.3%18.2%
The upward revision was driven by a significant increase in the growth attributable to private inventory changes.