GDP Revised Higher: What's With All These Revisions?!

by: Eddy Elfenbein

Eddy Elfenbein submits: The government revised GDP higher for the third quarter. The economy grew by 2.2% instead of the 1.6% the government said last month. Economists were expecting a revision to 1.8%.

This begins my quarterly rant against government revisions. I don't understand why the Commerce Department continually releases data that everyone knows will be altered in a few weeks. I'd much rather wait to get data, then to have a data that's always changing.

Over the summer, the Commerce Department revised all the GDP numbers going back to 2003. So even after the monthly revisions, the government can step in and revise data going back a few years...