Big changes coming in GDP reporting basis?

[donheff]

I read a brief article in The Economist's View that says the components included in GDP will be significantly revised in July, leading to a phantom 3% jump in US GDP.

The US economy will officially become 3 per cent bigger in July as part of a shake-up that will for the first time see government statistics take into account 21st century components such as film royalties and spending on research and development. ...

In an interview with the Financial Times, Brent Moulton, who manages the national accounts at the Bureau of Economic Analysis, said the update is the biggest since computer software was added to the accounts in 1999.

The brief article says we shouldn't look for large changes in trends or cycles, nevertheless it will be interesting to see what if any impact this has on market perceptions.

[gerntz]

I would assume the basis for both sets of numbers would be equalized; i.e., old numbers would be increased also to allow valid comparisons.

[donheff]

Quote:

Originally Posted by gerntz I would assume the basis for both sets of numbers would be equalized; i.e., old numbers would be increased also to allow valid comparisons.

The article indicates that will be the case.