No Recession, But BEA Has A Data Problem As The Gap Between GDI & GDP Hits $1 Trillion

Joe Carson
Aug 25, 2022
1 min read

Gross Domestic Income (GDI) increased 11.8% annualized in Q2, or 240 basis points faster than GDP. Adjusted for inflation, GDI rose 1.4% in Q2 versus a .6% decline in real GDP.

The statistical discrepancy (or the nominal dollar difference between the GDI and GDP) was nearly $1 trillion in Q2, a record gap. There is no recession, but there is a marked deterioration in the quality and accuracy of the product data.

Recent Posts

See All

Something Seems Off! Q4 GDP at 5%, Despite No Growth in Manufacturing, Housing & Few New Jobs

If you rely on the GDP estimates from the Federal Reserve Bank of Atlanta's team, the US economy is performing the improbable by growing well beyond its potential, despite two key sectors experiencing

Earth to Fed! Nominal GDP Surges Over 8% in Q3

Nominal GDP increased at an annual rate of 8.2% in Q3, after a 6% annualized rise in the previous quarter. These consecutive strong increases in nominal economic activity are the largest since 2022. M

Fed Chair "Words" Matter

During this week's press conference, Fed Chair Powell inserted himself and the Fed into the discussion about payroll job measurement. Powell stated that there is a "systemic overcount" of payrolls, es

No Recession, But BEA Has A Data Problem As The Gap Between GDI & GDP Hits $1 Trillion

Recent Posts

Comments

Stay in the know