Revisions Show US Economy Is Still Flying High

Hard luck for the hard-landers today. Today's GDP report was full of upward revisions:

(1) GDP versus GDI. Some of the hard-landers expected GDP to be revised lower after a large gap between GDP (which measures output) and Gross Domestic Income (GDI) (which measures economic activity via wages and profits) emerged over the past few quarters. Over time, GDI closely tracks GDP, but discrepancies tend to be revised in favor of the weaker indicator when the economy is slowing. Today, an update from the Bureau of Economic Analysis (BEA) showed that GDI has actually been understated. Higher incomes drove the upward revision.