I had never heard of the Quarterly Services Survey, or QSS, before this morning. I wager you hadn’t either. Measures consumer spending on services, like hospitals, daycare centers, and law firms. It’s 20% of the Commerce Department’s quarterly GDP calculation. The May estimate of health care spending was 9.1%; in June, it was revised downward to -1.4%.
What’s that as a percentage change? Plus or minus 110%? For 20% of the GDP (okay, health care spending is only one element, but that’s still huge). GDP contraction more than doubled. New figures due Thursday. Experts were puzzled.
Is this information valuable to you? Is variability/accuracy a concern?
Is there other government or economic data you rely upon? Is it more accurate? Do you know what the numbers are based on and how they are derived?
“If the information is more accurate, at least in theory, [businesses, investors, and policy makers] will make better decisions about investing …, tweaking interest rates and revising tax laws.”
Experts were puzzled? I’d say more like clueless.