Everyone's celebrating the GDP revision to 2.1%, but look closer at what actually matters: Personal Consumption — the 70% of GDP that reflects real economic activity.
It shrank markedly from last quarter AND got revised sharply lower from the initial estimate.
This is the stuff that tells you what's actually happening in the economy vs. what the headline number wants you to believe. Consumer spending is weakening while everyone's high-fiving the top-line number.
As an operator and investor in real businesses, I care way more about what consumers are actually doing with their wallets than what some revised aggregate metric says. And right now? They're pulling back.
Pay attention to the components, not just the headline. The devil's always in the details.
It shrank markedly from last quarter AND got revised sharply lower from the initial estimate.
This is the stuff that tells you what's actually happening in the economy vs. what the headline number wants you to believe. Consumer spending is weakening while everyone's high-fiving the top-line number.
As an operator and investor in real businesses, I care way more about what consumers are actually doing with their wallets than what some revised aggregate metric says. And right now? They're pulling back.
Pay attention to the components, not just the headline. The devil's always in the details.