U.S. Data Fluke Exaggerated Growth, Will Be Reversed

[fearnobush]

Oct. 27 (Bloomberg) -- An unexpected increase in auto production last quarter was a statistical fluke that will be reversed, making current U.S. economic growth even weaker, according to a former Commerce Department economist.

Last quarter's annualized 26 percent increase in motor vehicle production shocked Joe Carson, now director of economic research at AllianceBernstein LP in New York. Without the gain, the economy would have grown at an annual rate of 0.9 percent, not the 1.6 percent the Commerce Department reported today.

The reported increase in output came despite cutbacks announced by General Motors Corp., Ford Motor Co. and others. A drop in the wholesale price of SUVs and light trucks as the automakers cleared leftover 2006 models made production look stronger than it actually was, said Carson. The economic fallout from the auto-industry cutbacks will instead come this quarter, he said.

``Last quarter was weak even with the benefit of this mismatch and the fourth quarter will now also be weak because it's going the other way,'' Carson said. ``Whatever output you have this quarter, which will probably be down, will be discounted by a likely rebound in prices.''
...

<http://www.bloomberg.com/apps/news?pid=20601087&sid=alZ83kYOa2IA&refer=home>

[whistle]

1. The republicans jumped on that error and milked it for all they could

[fearnobush]

2. Is it really an error, or a dilberate error to make the economy look

more rosie than it really is. I bet they hoped it would not be noticed until after the mid terms.

[whistle]

4. With the Bush Administration and all the lackeys that have been

...placed in positions of authority, anything is possible

[stillcool]

3. If they look a little harder...

I'm sure they'll find some more 'faulty' data. I need Jon Stewart to get through all these stories...if I can't laugh, I'll cry.

[indepat]

5. Everything is coming up roses for you and me and all Americans and

Amurikkkans.

[dkofos]

6. Caught again fudging the numbers

Makes you wonder just how fucked up this country really is.

[karlrschneider]

7. 'fluke' now means: Somebody lied their ass off.

:grr: