Why does your Growth Index differ so much from the official GDP numbers published by the U.S. Department of Commerces Bureau of Economic Analysis (BEA)?
There are several reasons for the differences, all of which are significant for investors: 1) The BEA is using methodologies developed in the middle of the previous century to measure economic activities that were important at that time. We, on the other hand, are using twenty-first century technologies to measure real-time consumer activities typical of today. 2) The pace of the mid-twentieth century economy was such that a quarterly update was considered adequate for largely academic pursuits. Our indexes, however, have a daily time resolution and are updated daily (within days of data acquisition) for the benefit of the investing public. 3) The BEA extensively revises their numbers over several months in order to get the numbers finally ‘right’. This may have been acceptable 60 years ago, particularly when used for leisurely academic analysis. In contrast, our daily numbers are our final numbers; i.e., we don’t provide first, second and third estimates before publishing a final numb
Related Questions
- What is ICEs role in export enforcement and how does ICEs role differ from the roles of the Department of Commerce and the Federal Bureau of Investigation (FBI)?
- Why does your Growth Index differ so much from the official GDP numbers published by the U.S. Department of Commerces Bureau of Economic Analysis (BEA)?
- What is the U.S. Department of Commerce?
