You may hear in the business media this morning that fourth quarter GDP was revised upward from an initial reading to 5.7% to 5.9%. While the figure was revised up, all of the increase came from components other than consumer spending. In fact, at the time of the initial posting of the figure I said that GDP growth that simply represented manufacturers making goods in anticipation of consumer spending is not sustainable. Unfortunately for folks who like to spin news, this latest revision to GDP actually shows an even lower number for consumer spending growth, from an initial estimate of 2.0%, down to 1.7%.
My favorite part of the news flow surrounding today’s news is that supposedly futures were slightly lower to barely up this morning because “investors” are worried that GDP growth is not sustainable based solely on manufacturers restocking shelves. Duh! Am I that smart, or are folks just so dumb?
Have a good weekend!
Jason
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