This is surprise. The second revision on Q4 GDP gives an increase of 5.9% from 5.7% GDP growth in the advance report.
To compare, here is the advance Q4 2009 GDP report.
As a reminder, GDP is made up of:
Y=GDP, C=Consumption, I=Investment, G=Government Spending, (X-M)=Net Exports, X=Exports, M=Imports.
For reminder's sake, this was the breakdown of GDP components from the Q4 2009 advanced report:
- C = 2.0%
- I = 39.3%
- G = 0.1%
- X = 18.1%
- M = 10.5%
This revision those Q4 2009 GDP numbers are:
- C = 1.7%
- I = 48.9%
- G = -1.2%
- X = 22.4%
- M = 15.3%
The percent change of GDP components between the advanced report and this second Q4 2009 GDP revision:
- C = -0.3%
- I = +9.3%
- G = -1.1%
- X = -4.3%
- M = -4.8%
Wow. Butt Ugly. We can see that inventory cliff dive reduction now over (slow down) was massive, now even more humongous than the advanced report.
The real bummer is the negative decline in exports and the increase in imports. So much for the real economy coming back to life! Also note that consumption is down in this revision.
Real GDP decreased -2.4% in 2009. Here is the yearly breakdown:
- C = -0.6%
- I = -23.1%
- G = 1.7%
- X = -9.6%
- M = -13.9%
So, increased government spending is about the only thing that softened the blow for all of 2009.
According to CBS Market Watch, this is the worst yearly GDP since 1946, when due to the end of WWII, the economy shrank by 10.9%. Gee wiz, we do not have a world war, or do we? This is what Warren Buffett meant when he called derivatives weapons of mass destruction.