The slowdown in economic growth recorded in the second quarter was likely even less robust than initially reported on Friday, according to new inventory data released today.
Inventories have had a major impact on growth over the past few quarters, and the change was estimated to have added more than one percentage point to the 2.4% annual rate of gross domestic product growth reported by the Commerce Department Friday. But factory-order data for June shows that the estimate used to calculate the preliminary number was way off.
One reads that GDP growth wasn’t even a paltry 2.4%, but likely between only 1.7% and 2%.
See, Second-Quarter Slowdown Likely Worse Than First Thought – Real Time Economics – WSJ.