๐ถ A Large Downward Revision May Be Coming in US GDP Data! ๐
๐ถ The difference between Real GDP and real Gross Domestic Income (GDI) has reached a record $616 billion. ๐ฎ
๐ถ GDI measures earnings by all participants of the economy, while GDP reflects the value of total economic output.
๐ถ Historically, GDI has been a leading indicator of final GDP data revisions and the unemployment rate, especially near the end of economic cycles.
๐ถ Currently, GDI suggests the real GDP could be overstated by ~$600 billion or approximately 3%.
๐ถ By the time these revisions are made, attention often shifts away from the current GDP numbers.
Downward data revisions are becoming the new normal. ๐
