Just in case there is some confusion over the release of the Q1 GDP figure, I’ve had a brief nose around for some information.
The US has re-adjusted the way it is going to calculate GDP. This started from the beginning of April. The Q1 figure released will be released under the old calculation with the new calculation used for the Q2 result.
When they apply the new system it will also re-write the entire financial history of the US going back to 1929.
The FT carries a brief overview here (may be gated but viewable if you google search)
Seeking Alpha has a good article explaining simply what the new calculation includes here (It’s 2 pages and unfortunately the second page is gated. The main info you need is on the first page though).
For those that really like their reading the full bureau of economic analysis (the dept charged with the re-calculation)release is here
Trading wise we don’t really have to worry about it until July (phew!) and no doubt all and sundry will be out having their say. One thing I would note is that the Q2 release could send some algos crazy if they start seeing adjusted comparable figures or the like, but we’ll worry about it nearer the time.
