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Economic Statistics for 29 Jul 16

The preliminary estimate for 2nd Quarter GDP is an anemic 1.2% annualized rate. The GDP Price index rose to a 2.2% rate. In addition, 1st Quarter GDP was revised downwards to 0.8% annualized.

The Employment Cost index rose 0.6% in the 2nd Quarter, and is up 2.3% from a year ago.

The University of Michigan’s Consumer Sentiment Index rose 0.5 points to 90.0 in July.

The Chicago Purchasing manager’s Index fell a full point to 55.8 in July.

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One Response to Economic Statistics for 29 Jul 16

  • An in-depth analysis by CNBC of the government’s reports on gross domestic product suggests large and persistent errors that should give investors, business executives and policymakers pause in relying on the data for key decisions.

    CNBC looked at each quarterly report going back to 1990 and found an average error rate of 1.3 percentage points. So an initial report of 1.2 percent growth on average could later be revised to 2.5 percent or -0.1 percent, meaning it was useless as a measure the direction of the economy.