Friday, February 25, 2005
I knew this one would be revised based on the employment data and the Institute for Supply Management (ISM) reports of that period. The ISM surveys have been calling this right all along. (www.ism.ws)
My guess is that the GDP models do not account for small business the way they should now. The economy has changed so much because of communications tech that small businesses can be a far more powerful force than they once were.
Click on the title of this note (Today's GDP revision) to go to the official GDP press release from the Bureau of Economic Analysis.