Separating Signal From Noise in Quarterly GDP Growth Reports

The rate of GDP growth from a year earlier fell from 2.3 to 2.2%. Which is to say, the rate of growth was essentially unchanged.

People who prefer the continuously compounded rate of quarterly change saw GDP growth fall from 4.3% to 1.4%. This measure assumes the change of the most recent quarter will continue for a full year. (Spoiler alert: it never does.) 

Headlines last quarter that told you the economy grew surprisingly fast and that this quarter tell you the economy has slowed down? Those folks might just be confusing noise for signal.