Comments on: US GDP comes in at minus 1% http://www.creditwritedowns.com/2009/07/us-gdp-comes-in-at-minus-1.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Terry http://www.creditwritedowns.com/2009/07/us-gdp-comes-in-at-minus-1.html#comment-56815 Terry Sat, 01 Aug 2009 14:21:00 +0000 http://www.creditwritedowns.com/2009/07/us-gdp-comes-in-at-minus-1.html#comment-56815 Thanks for the update and explanation of the new GDP methodology. I would note that Jake at Econompic has a quick noe (& graph, of course) showing that if the old methodology was used, our decline in 2Q09 would have been -2.3% vs. -1.0% with the new. Here's the link: http://econompicdata.blogspot.com/2009/07/q2-gdp-closer-to-23-accounting-for.html Like I said, you can call me cynical, but at least for the most recent and pertinent quarter, the revision in the GDP methodology makes the economy look better than the previous methodology--following on the heels of such "improvements" in unemployment, CPI, and other USG economic reporting. My guess is that this will continue to be the pattern for some time. Would be interested in your assessment of the validity/utility of the new method vs. the old. Thanks for the update and explanation of the new GDP methodology. I would note that Jake at Econompic has a quick noe (& graph, of course) showing that if the old methodology was used, our decline in 2Q09 would have been -2.3% vs. -1.0% with the new.

Here’s the link: http://econompicdata.blogspot.com/2009/07/q2-gdp-closer-to-23-accounting-for.html

Like I said, you can call me cynical, but at least for the most recent and pertinent quarter, the revision in the GDP methodology makes the economy look better than the previous methodology–following on the heels of such “improvements” in unemployment, CPI, and other USG economic reporting. My guess is that this will continue to be the pattern for some time.

Would be interested in your assessment of the validity/utility of the new method vs. the old.

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