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Monday, December 23, 2013

This GDP Measure Warns That The US Is Heading For A Recession

Earlier this month, we learned that GDP growth spiked to 3.6% at an annualized pace in Q3.

However, this was largely driven by a spike in inventories, which added a whopping 1.7 percentage points to the headline growth number.

Inventory gives and eventually inventory adjustments taketh away from GDP. This is why economists often emphasize real final sales, the GDP growth metric that excludes inventory.

During the period, real final sales growth slipped to just 1.9% from 2.1% in Q2.

This is not a good sign according to Bloomberg Briefs economist Rich Yamarone.

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3 comments:

  1. We are heading into a bad recession I don't care what the market is its Artificial when housing is still down and gas is still up and people still don't go out as much in the country we will hit Rock Bottom real soon mark my word.........Paul A

    ReplyDelete
  2. My hair is in a recession.Is that any indicator?

    ReplyDelete
  3. " Warns That The US Is Heading For A Recession"

    That's hilarious!

    How do we go from a 5 year depression into a recession?????

    Is anyone out there in news reporting land paying attention?

    ReplyDelete

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