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Q3 GDP Revised Higher As Inventories Surge Again, Personal Consumption Disappoints
A month ago the US economy was said to have grown only 1.5%, driven by a long-overdue and perhaps welcome correction to inventories. Moments ago we got the first revision to the Q3 GDP, which as consensus expected rose from 1.5% to 2.1%, however for all the wrong reasons because while personal consumption actually decline from a 3.2% increase, and a 2.19% contribution to the GDP bottom line, it is now said to have grown only 3.0%, adding 2.05% to the final GDP print.
So what drove the jump?
The "old faithful" plug to "growth" inventories, which instead of dropping at an annualized 1.44% as in the original release, declined just 0.59% annualized, meaning that instead of contributing $62.2 billion, inventories jumped a material $100.6 billion, confirming that the inventory liquidation is still to take place, and as a result we now expect substantial downward revisions to Q4 GDP in the coming hours as Wall Street has no choice but to assume the inventory reduction will now be shifted to Q4.
The summary GDP print:
The detail:
And the inventory contribution to GDP, showing that Q3 increase from $62.2 billion to a whopping $100.6 billion.

Spot the "revision"
The punchline: if it wasn't for the $40 billion surge in inventories shown above, Q3 GDP would be 1.2%!
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Sounds very bullish in this rigged market.....and let's see if Putin sends these people to their eternal "Snackbar". Not a good day for the morons who just think they won something buy kicking that restless bear......called Rusiia.. Bullish though..
FED lies economy dies.
This data brought to you by Brian Williams.
In the river of shit, only the brown trout survives.
Btw No Debt- you are my favorite commenter. Just so you know.
Those inventories will come in handy during the inclimate weather coming in the next quarter.
Planning bitchez.
Oh yeah.
Watch Liesman and the Dickies tell us that inventory accumulation is an indication that business has a positive outlook
Inventory accumulations are unwanted, cause by slowing final demand and cause businesses to cut back, as the entire economy then slows.
Meanwhile in the middle East:
Gog, may I introduce Megog.
Megog, Gog.
We were handed the prophecies but seem to have ignored them. Don't worry, we're all gonna find out if there is a God, for real. Sooner than we'd like.
PS Take a close read of Vlad's comments. He says the guys who shot down the Rooskie fighter and their supporters are Vlad's terrorists. Clear as a bell, he's said we are his problem. Not "them", but "us".
Expect more directions to shelter in place under the couch with a pair of dull paper scissors
Stocking up for (Kondratieff) winter I s'pose.
Kondratieff and Maunder winters.
Don't fuck with the Conscious Universe
I'm thankful we aren't at War today. (Tomorrow's another story however)
Ha! See there... I knew everything was great. I am going to change my screen name from Cautiously Pessimistic to Overly Optimistic today!!!
Yeee haw.... We're back baby!
Inventory growth without consumption is not GDP growth, its a disater.
See? All fixed. What were we so worried about?
And yet the worst quarter of Corporate profits after tax growth since the third quarter of 2008, down 8.15% year over year.
No worries rate hikes will ultimately expose the farce..
REVISE THE LIES.
Since the ObamaCareLess tax is counted in GDP; that is the only area where people are forced to spend more and that trend will continue with aging demographics. The goal is to remove all the Baby boomers have so they have nothing left to leave their children.
Many pensions have already been cut by 50% as well and that trend will continue. It is only the beginning; we have much more pain to endure, for we have been abandoned by God, for we turned from his ways and He then allows us to go our own way; always downhill. But Grace is a wide door and all are welcome to enter by faith.
What happens Europe will eventually reach here; keep your eyes on Chicago over the next few days to a few weeks. Think worse than Paris; pyschopaths gone wild.
Just make a big pile of inventory and line it with explosives. When ISIS comes to take it, BOOM!! Two problems solved.