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