Q2 GDP Revised to +4.2%

Some good economic news this morning. Wall Street was surprised when the initial report for Q2 GDP came in at 4%. Today it was revised higher to 4.2%. A lot of economists had been expecting a downward revision.

Domestic demand increased at a brisk 3.1 percent rate, instead of the previously reported 2.8 percent pace. It was the fastest pace since the second quarter of 2010 and suggested the recovery was becoming more durable after output slumped in the first quarter because of an unusually cold winter.

Third-quarter growth estimates range as high as a 3.6 percent rate.

Economists polled by Reuters had expected the second-quarter GDP growth pace would be revised down to 3.9 percent. The economy contracted at a 2.1 percent pace in the first quarter.

Gross domestic income, which measures the income side of the growth ledger, surged at a 4.7 percent rate, consistent with strong job gains during the quarter. That was the fastest increase since the first quarter of 2012.

Posted by on August 28th, 2014 at 9:35 am

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