When Q3 GDP came out, Nouriel Roubini defended his bearish estimate by noting that the positive number was all based on inventory revisions, and not final sales or consumption.
There’s something fair to that, because the inventory build can only last so long, and end demand has to kick in.
But! Final sales just got revised… Originally they were estimated at 0.6%, but now they’re at 1.2% according to the BEA.
Consumer spending, meanwhile, was revised from 2.6% growth to 2.8% growth and from 2.2% in Q2.