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Blowout GDP Number

January 28, 2011

Way, way better than I expected: Top line sales up 7.1%  That is one of the best readings ever for this number.  The fact that inventories could only add $7bn and therefore subtracted 3.7% (!) from GDP is actually good news. This is the biggest since the late 1980’s. To me, this means that businesses couldn’t stock the shelves fast enough. So businesses couldn’t build inventory at all. I am surprised the inventory number was so close to being negative.

1 year from today this will be marked as a huge blowout report. In any case, not a great headline number, but the largest final sales number in several generations.

 

 

 

 

 

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