Everyone is still digesting the unexpected downward revision to Q1 GDP growth to 1.8% from an earlier estimate of 2.4%.
High Frequency Economics' Jim O'Sullivan is convinced that the number is missing some information, and it's likely to be revised up next month.
In a note today, he points out that gross domestic income — which takes into account wages and profits — has outperformed GDP, which suggests there's something wrong with the GDP number. Here's the chart:
Everyone is still digesting the unexpected downward revision to Q1 GDP growth to 1.8% from an earlier estimate of 2.4%.
High Frequency Economics' Jim O'Sullivan is convinced that the number is missing some information, and it's likely to be revised up next month.
In a note today, he points out that gross domestic income — which takes into account wages and profits — has outperformed GDP, which suggests there's something wrong with the GDP number. Here's the chart:
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