TheStreet.com’s Marek Fuchs points out that there’s been another quarter where the Gross Domestic Product was revised a significant amount, meaning that coverage of the initial number was misleading to readers because it failed to note that revisions are a regular event.
Fuchs wrote, “GDP numbers are originally reported as set fact. A myriad of conclusions are drawn from the initial report, even though the numbers are revised significantly on a regular basis.
“Then the revision comes out, and guess what? The business media matter-of-factly report the revision, drawing a whole new myriad of conclusions.
“The business media win: They get double the copy from what should be one number and one set of conclusions.
“But investors lose. They get lulled into thinking a recession is imminent when one isn’t. Or that the economy is starting to overheat when it’s not.
“You can read some of mypastwork to see how canyonwide the gap between initial reports and revisions are — and how misleading those original headlines and articles tend to be to investors merely looking to get a bead on the economy.”
OLD Media Moves
Biz journalists and GDP don't mix
March 3, 2007
TheStreet.com’s Marek Fuchs points out that there’s been another quarter where the Gross Domestic Product was revised a significant amount, meaning that coverage of the initial number was misleading to readers because it failed to note that revisions are a regular event.
Fuchs wrote, “GDP numbers are originally reported as set fact. A myriad of conclusions are drawn from the initial report, even though the numbers are revised significantly on a regular basis.
“Then the revision comes out, and guess what? The business media matter-of-factly report the revision, drawing a whole new myriad of conclusions.
“The business media win: They get double the copy from what should be one number and one set of conclusions.
“But investors lose. They get lulled into thinking a recession is imminent when one isn’t. Or that the economy is starting to overheat when it’s not.
“You can read some of my past work to see how canyonwide the gap between initial reports and revisions are — and how misleading those original headlines and articles tend to be to investors merely looking to get a bead on the economy.”
Read more here.
Media News
Economist’s Bennet, WSJ’s Morrow receive awards
November 14, 2024
Media News
WSJ is testing AI-generated article summaries
November 14, 2024
Media News
Cohen joining Bloomberg Tax
November 14, 2024
Media News
Avila named interim editor for Automotive Dive
November 14, 2024
Full-Time
Reuters seeks a fact-checking editor
November 14, 2024
Subscribe to TBN
Receive updates about new stories in the industry daily or weekly.