Article written by Tyler Durden
In its third estimate for US Q2 GDP, the BEA (Bureau of Economic Analysis) reported Monday morning that the largest U.S. economic contraction in history was revised to -31.4%. This was an improvement from the initial -32.91% reported, but nonetheless still pretty horrific.
The GDP revision reflecting an upward revision to consumer spending on services.
The specific changes were as follows:
- Personal Consumption: from -24.76% to -24.01%
- Fixed Investment: from -5.20% to -5.27%
- Private Inventories: from -3.46% to -3.50%
- Net Exports: from 0.90% to 0.62%
- Government consumption: from 0.82% to 0.77%
The BEA also announced that corporate profits decreased from 19.3% in Q2 compared to one year ago.
More info:
- Profits of domestic non-financial corporations decreased 12.9 percent after decreasing 14.4 percent.
- Profits of domestic financial corporations increased 6.1 percent after decreasing 8.9 percent.
- Profits from the rest of the world decreased 18.9 percent after decreasing 8.4 percent
This data is 3 months old, but shows how alarming the data was for the US economy from March onwards.
The more important information, however, will be announced Oct. 29, when the first estimate of Q3 GDP will be released. The figure is expected to be in the +30% ballpark, making it the strongest annualized GDP growth in US history.
Works Cited:
https://www.zerohedge.com/markets/final-q2-gdp-revision-shows-us-economy-shrank-314