Monday, September 28, 2015

Another Notch Up for GDP

The Commerce Department revised its second quarter GDP reading for the final time on Friday, nudging it up to 3.9 percent rate, compared with a prior estimate of 3.7 percent. After a disappointing first quarter when growth was barely positive at 0.6 percent, that figure looks pretty solid.

The new number was the result not of one big change but a handful of small upward revisions. Household consumption was revised to a 3.6 percent gain compared with an initial estimate of 3.1 percent. Business investment climbed at a 5.2 percent annualized pace, compared with a prior estimate of 4.1 percent. Investment in nonresidential structures, including office buildings and factories, rose 6.2 percent, the most in more than a year.

Also looking very strong was residential construction, which increased at a 9.3 percent rate, up from an already impressive previous estimate of 7.8 percent. That's yet another sign of the rebound of the housing market.

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