(IGM)[US GDP DATA - SOFTWARE SWINGS] Typical big movers for GDP revisions are trade and inventories. Not this time. Trade in...
[US GDP DATA - SOFTWARE SWINGS] Typical big movers for GDP revisions are trade and inventories. Not this time. Trade in the final Q2 revision added 0.05% more to GDP (that's annualized) while inventories were a 0.03% bigger drag. Non-residential investment added an extra 0.14% to GDP, accounting for about 1/2 the gain over the prior revision, most of that from software. We noted earlier a slightly bigger drag from inventories in Q2 makes for a slightly better inventory number in Q3. The most important point, though, is 'slightly". Personal consumption took 0.07% less from GDP than in the 1st revision. In general, a better level of spending is encouraging, but the narrow base means one should not read too much into it. The 0.3% GDP improvement in the final revision doesn't imply all that much for future growth, or for policy.