Wednesday, November 30, 2016

Third Quarter GDP Bumps Up

Some strong economic news: Gross domestic product expanded at a 3.2 percent annual rate in the Commerce Department’s second reading for the third quarter, released yesterday. That's up from an initial estimate of 2.9 percent, and is the strongest pace since the second quarter of 2014.

Consumer spending rose 2.8 percent in the quarter, higher than the original estimate of 2.1 percent and the strongest rate since 2002. The consumer sector accounts for two-thirds of the economy, and has been a strong factor in economic growth for several quarters.

Also helping out: Corporate profits soared 6.6 percent in the third quarter, following on the heels of a 0.6 percent decline in the second quarter. After-tax profits rose 7.6 percent from the second quarter.

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