A Glance at the GDP Revision

The headline number is lower but the positive developments from the initial release are still there. I acknowledged these here and here.

The revision was downward because the imports contribution (which subtracts from the headline number) was bigger and because the contribution of inventories was smaller. These two are not outright negative developments.

On the other hand the personal consumption of services added almost double the initial release amount, which is a clear positive.

In short, this is not a report to sell. If the market does not rally today or early next week, it is headed below 1000.