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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