GDP Revised Up; Corporate Profits Bouncing Back
As GDP releases go, this one doesn’t garner much attention because of the limited amount of new information. The new information that merits some discussion includes revisions and profits. First up, revisions. GDP growth was revised up from 2.8 percent at an annual rate to 3.1 percent. How large is the typical revision? 0.3 percentage point, so today’s revision is of average size. Also, if you recall last month, the numbers were revised down by 0.4 percentage point. What does all of this mean? It means that the economy was growing at about a 3 percent annual rate at the end of last year, and today’s revision doesn’t alter the fundamental view of what is happ