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355 points Aloisius | 1 comments | | HN request time: 0.203s | source
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Aloisius ◴[] No.44390494[source]
I'm a bit confused about the bit about the "Imports expanded 37.9%, fastest since 2020, and pushed GDP down by nearly 4.7 percentage points" bit.

Presumably when they calculated GDP previously, they hadn't seen quite as much imports, but had seen higher spending, thus they misattributed some of it to domestic products rather than imports, though I'm a bit confused as to how they underestimated imports given everything is declared. Perhaps some changes in the price index?

Though other articles talk about the expected GDP next quarter being higher because they don't expect a surge of imports to continue, which makes no sense to me unless one assumes spending remains the same with or without imports.

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jfengel ◴[] No.44391023[source]
Spending did not keep up; if it had, the net effect on GDP would be zero.

This is companies stocking up, and the items are in inventory. They will sell it over the next quarter or so, at which point the tariffs will really weigh.

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1. cchance ◴[] No.44391423[source]
I've heard this from a number of buyers for companies, that their companies have hugely held stockpiles, to avoid the tariff uncertainty in hope they get worked out before stockpiles run out... most of the ones i've talked to say its only gonna last a few months before shit really hits the fan