Garbage In Garbage Out – Govt corrects construction data

The Commerce Department’s November construction spending report contained the following footnote: “Monthly and annual estimates… for January 2005 through October 2015 have been revised to correct a processing error in the tabulation of data on private residential improvement spending.”

No big deal, right, since it was just a processing error and mentioned only in a footnote. But read this: “The upward revision to spending in 2014 is enough to raise growth that year from 2.4% to 2.6%-2.7%,” wrote IHS Global Insight US economist Patrick Newport in a research note. “The revisions are likely to boost growth for 2015 as well.” (more…)