30 August 2023
More downward revisions from the Biden administration: the first Q2 GDP revision cut growth to a meager 2.1% from an initially touted 2.4%. Personal consumption contributed just 1.14%, fixed investment dropped to 0.66%, and private inventories swung negative at -0.09%. Net exports were trimmed lower too. Government consumption, a debated economic metric, surprisingly rose to 0.58%. Inflation indicators painted a mixed picture, with gross domestic purchases prices at 1.7% and PCE prices at 2.5%. Corporate profits, as per the BEA, plunged 0.4%. The widening gap between official data and business realities is concerning. The upcoming Q3 GDPNow estimate is likely to adjust sharply downward.