Q2 GDP Revised to 4.2%

This morning, the Feds revised upward their estimate for Q2 GDP growth. They now say the economy grew in real annualized terms of 4.2% during the second three months of the year. The initial report, released a month ago, said the economy had grown by 4.1%. The report will be revised again in late September.

From the WSJ:

The second-quarter growth rate’s revision partly reflected stronger business investment than earlier forecast and a slight downward revision to consumer spending. The 4.2% rate still marked the strongest pace of growth in nearly four years.

That followed a growth rate of 2.2% in the first quarter. Output expanded 2.9% in the second quarter compared with the same quarter a year earlier.

Growth in U.S. corporate profits moderated in the second quarter compared with the first, according to the government’s initial broad estimate of profits at U.S. companies in the second quarter.

After-tax corporate profits with inventory valuation and capital consumption adjustments, a measure of profits from production that quarter, rose 2.4% in the second quarter from the prior quarter after rising 8.2% in the first quarter. After-tax profits without inventory valuation and capital consumption adjustments rose a seasonally adjusted 3.7% from the prior quarter after rising 8.5% in the first quarter.

Here’s a look at the year-over-year change in nominal GDP:

Posted by on August 29th, 2018 at 10:32 am


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