GDP revisions reveal slower growth from 2012 to 2014, Slowest US recovery since end of World War II is even weaker, New GDP reporting supposed to correct flaws in how military outlays and spending on consumer services such as health care are treated
“Economic growth in the first quarter was restrained by factors including tepid foreign demand and harsh winter weather. At the same time, households saved most of their gains from low energy prices, Over the past four quarters, the most persistent and stable components of GDP — consumption and fixed investment — have grown 3.3 percent. This trend complements the strong pace of job growth and unemployment reduction over the last year.”... White House April 29, 2015
“two-thirds of the “boost” to final Q3 personal consumption came from, drumroll, the same Obamacare which initially was supposed to boost Q1 GDP until the “polar vortex” crashed the number so badly, the BEA decided to pull it completely and leave this “growth dry powder” for another quarter. That quarter was Q3.”…Zero Hedge December 23, 2014
“We are being lied to on a scale unimaginable by George Orwell.”…Citizen Wells
From Market Watch July 30, 2015.
“U.S. economy didn’t grow as fast as we were told from 2012 to 2014
The U.S. economy grew somewhat more slowly from 2012 to 2014 than previously estimated, according to a new government approach to gross domestic product that addresses flaws in how the report is produced.
The U.S. expanded at average 2% rate each year from 2012 to 2014 instead of 2.3% as reported under the old method of calculating GDP, the Bureau of Economic Analysis said. GDP reflects the value of all goods and services produced by the U.S. and is viewed as the best general measure of a nation’s economic health.
In short, the slowest U.S. recovery since the end of World War II is even weaker than everyone thought.
The BEA on Thursday unveiled a new-look GDP that’s supposed to correct flaws in how military outlays and spending on consumer services such as health care are treated, among other things. The new report also incorporates changes in how certain taxes and social benefits are categorized.
The first phase of the changes were rolled out Thursday. Two more phases will follow next year, potentially leading to more significant revisions to U.S. growth over the past few years.
Under the new GDP formula, U.S. growth in 2012 was trimmed to 2.2% from 2.3%. Growth in 2013 was chopped to 1.5% from 2.2%. And GDP in 2014 was unchanged at 2.4%.
Government bean counters began to reengineer the GDP report after the economy showed a contraction in the first quarter for the third time in five years. Historically the U.S. economy rarely shrinks during an economic expansion.
The wide discrepancy between quarters drew criticism from Wall Street economists and others who argued the GDP report was increasingly error-prone. Poor winter weather alone couldn’t account for gap, they argued, and it turns out they were right.”