GDP Bounce Keeps Climbing
The Bureau of Economic Analysis reported its readings on gross domestic product (GDP) Friday morning. In recent history for this quarter, the initial estimate that came out in July at 3.1%, compared to a revision to 4.2%. The final revision for this quarter came in at 4.6%, which matched up perfectly with the Bloomberg estimate. This is noted as the fastest pace that the U.S. economy has grown since late in 2011, and this is another sign of recovery after roughly five years of sluggishness.
The most recent estimate reflected a higher business investment, due in part to the construction of manufacturing facilities.
Real nonresidential fixed investment was revised to 8.4% from 1.6% in the last reading. Real nonresidential fixed investment had a final reading of 9.7%, which was above both previous estimates.
Exports of goods and services was revised to 11.1% from the previous reading of 10.1%. This is well above the first quarter's negative reading of 9.2%.
The GDP price index increased to 2.0%, which was just 0.1% more than the second reading. The GDP price index remains relatively unchanged from the previous reading.
Ultimately this report will support the views that the economy is reaching a stronger phase of growth after the recession of the past five years.
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Filed under: Economy