Q3 2013 real GDP had a blow out revision and is now 3.6%. Originally GDP was reported to be 2.8% for the third quarter. As estimated, dramatically increasing inventory accumulation was the main cause of the large upward revision to GDP. Changes in inventories accounted for 46.5% of Q3 GDP. The increasing trade deficit shaved off 0.23 percentage points, as predicted. Actual economic demand is weaker in the third quarter in comparison to the 2nd. Additionally large inventory accumulation can imply a slowing economy.
Showing posts with label unplanned inventory. Show all posts
Showing posts with label unplanned inventory. Show all posts
Thursday, December 5, 2013
Robert Oak — GDP 3.6% Blowout Revision for Q3 2013 [Not as it seems]
Friday, September 27, 2013
Renee Dudley — Wal-Mart Cutting Orders as Unsold Merchandise Piles Up
Wal-Mart Stores Inc. (WMT) is cutting orders it places with suppliers this quarter and next to address rising inventory the company flagged in last month’s earnings report.
Last week, an ordering manager at the company’s Bentonville, Arkansas, headquarters described the pullback in an e-mail to a supplier, who said others got similar messages. “We are looking at reducing inventory for Q3 and Q4,” said the Sept. 17 e-mail, which was reviewed by Bloomberg News.Bloomberg
Wal-Mart Cutting Orders as Unsold Merchandise Piles Up
Renee Dudley
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