Commerce to change US growth calculations - WSJ
NEW YORK, Sept 8 (Reuters) - The U.S. Commerce Department is to unveil on Wednesday changes in how it calculates economic growth, the Wall Street Journal reported in Wednesday's online edition.
The paper said the department concludes that heavy business investment in computer software means American economic output has been even greater in the 1990s than previously estimated.
Making changes to the way software purchases are treated could increase the official estimate of gross domestic product in 1996 by about $115 billion, or 1.5 percent, the paper reported, citing a publication by a unit of the Commerce Department.
The Journal said government economists are also set to announce that they are sharply raising their estimate of productivity in the banking industry.
These economists acknowledge that conventional benchmarks have not adequately recognised the effect of the financial revolution over the past two decades, the paper said.
The Journal said officials will also describe a change in calculating household savings, which could mean that the official personal savings rate is actually positive.
The Commerce had been reporting a negative savings rate, meaning Americans are spending more than they earn, in recent months.
The paper said the three changes were part of a review of the way the government measures the economy, which is conducted every five years by the department's Bureau of Economic Analysis.
>>>Guess he really wants to raise spending programs and
>>>entitlements and will do anything to get there.
>>>After this, they will probably revise the 'surplus'
>>>higher for the next 15 years. |
