We had forecast that real GDP would be recorded at $13,602.8 billion in terms of constant 2005 U.S. dollars, and the BEA's initial estimate came in at $13,616.2 billion - a difference of $13.4 billion, or with 0.01% of the BEA's recorded figure.
The BEA will revise this figure twice more before the end of the year. We anticipate that it will be adjusted upward, as the third quarter of 2012 likely recorded the U.S.' strongest economic performance for the year.
By contrast, our inertia-based forecasting methods point to a slowing economy in the current fourth quarter of 2012. Our chart uses the BEA's initial estimate for 2012-Q3 GDP to project a first look at where we can reasonably expect GDP in 2012-Q4 to be recorded.
Using the BEA's initial estimate of GDP for the third quarter of 2012, we would currently give a 50% probability that GDP will be recorded above our forecast value of $13,671 billion in terms of constant 2005 U.S. dollars. For the statistically illiterate, that means there is also a 50% probability that GDP will be recorded below this value.
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Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 25th, 2014 | John Ransom
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 24th, 2014 | John Ransom