3.3% GDP !

anatta said:
The U.S. economy’s growth rate last quarter was revised upward to the fastest in three years on stronger investment from businesses and government agencies than previously estimated, Commerce Department data showed Wednesday.
Highlights of Third-Quarter GDP (Second Estimate)

Gross domestic product grew at a 3.3% annualized rate (est. 3.2%), revised from 3%; fastest since 3Q 2014
Consumer spending, biggest part of the economy, grew 2.3% (est. 2.5%); revised from 2.4%; down from 3.3% in 2Q
Business-equipment spending rose at a 10.4% pace, a three-year high, revised from 8.6%; reflects transportation gear
Corporate pretax earnings rose 5.4% y/y, following a 6.3% y/y advance

Key Takeaways

The latest results for GDP, the value of all goods and services produced, show the economy withstood major hurricanes to reach a more solid footing as it entered the final stretch of the year, thanks to stronger business spending that’s helping cushion a softer pace of consumption.

Federal Reserve Chair Janet Yellen said Wednesday, just before the GDP report, that the expansion is “increasingly broad based across sectors as well as across much of the global economy.”

While the revised growth rate is in line with President Donald Trump’s goal, economists generally see such a pace as unsustainable and expect growth to slow sometime in 2018. Trump and congressional Republicans are pushing a tax-cut plan with the aim of lifting GDP gains to 3 percent annually.

Consumer spending, which accounts for about 70 percent of the economy, continues to be the main driver of growth, though revisions showed it was slightly weaker than previously estimated on purchases of both durable and nondurable goods.

The biggest improvement came in business investment, which made a 1.2 percentage-point contribution to growth, up from 0.98 point in the initial estimate a month ago. In addition to greater spending on transportation equipment, the data also reflected more software spending. Nonresidential structures were revised to a bigger decline.

While the first look at third-quarter gross domestic income showed a pickup, the prior quarter was revised downward by 0.6 percentage point, reflecting a smaller gain in wages and salaries. The average of GDP and GDI was a 2.9 percent gain. Corporate profits grew, albeit at a slower year-over-year pace than in the prior period.

Price data in the GDP report showed inflation remains behind the Fed’s 2 percent goal. Excluding food and energy, the central bank’s preferred price index tied to personal spending rose at a 1.4 percent annualized rate last quarter, revised from 1.3 percent and following a second-quarter gain of 0.9 percent.
Other Details

Net exports added 0.43 percentage point to growth, revised up from 0.41 point; inventories added 0.8 point, revised up from 0.73 point
Gross domestic income, adjusted for inflation, rose 2.5 percent after a downwardly revised 2.3 percent gain in the prior three months; second-quarter wages and salaries were revised downward by $26.5 billion
Nonresidential fixed investment -- which includes spending on equipment, structures and intellectual property -- increased 4.7 percent, revised from 3.9 percent
Residential investment fell at a 5.1 percent rate, smaller than previous estimate of 6 percent drop
Stripping out trade and inventories -- the two most volatile components of the GDP calculation -- final sales to domestic purchasers climbed 2 percent, revised from 1.8 percent
Government spending increased at a 0.4 percent rate, revised from 0.1 percent decline; the figures reflected an upward revision to state and local construction spending
After-tax incomes adjusted for inflation increased at a 0.6 percent annual pace, revised from 0.5 percent; saving rate revised to 3.3 percent from 3.4 percent
GDP report is the second of three estimates for the quarter; the third is due in December as more data become available
https://www.bloomberg.com/news/arti...rter-growth-revised-up-to-3-3-three-year-high
Click to expand...

THANKS OBAMA...........

Obama didn't hand the guy from tv the same pile of shit he was handed on day one~& you voted for................
 
Bill said:
THANKS OBAMA...........

Obama didn't hand the guy from tv the same pile of shit he was handed on day one~& you voted for................
Click to expand...

this was covered. Obama gets credit for what he did - pulling us out of the recession and creating jobs.

Trump follows up by creating (GDP) wealth, and higher wages, as well as expanding good jobs.

There is no reason to deny Obama or Trump's roles
 
archives said:
So you want to add one and half trillion on to the National Debt when it isn't necessary so that which is supposedly good can get better? Doesn't even make sense
Click to expand...

Yet you had no problem with you boy Obama adding $10 trillion to the debt. Why you had no problem is understandable.
 
Thread: 3.3% GDP !
Click to expand...
There's an unsubstantiated notion that the U.S. can reasonably expect a certain GDP. Some that assume that, criticized Obama's recovery from the Bush recession, because they said our recovery GDP wasn't high enough.
This GDP expectation has developed over centuries of history.

My question:

That expectation developed under conditions which due to globalization and other factors no longer exist.

Are those in pursuit of this historic standard of GDP actually seeking a will-o’-the-wisp, and not aware of it?

Has a subtle paradigm shift placed this historic standard out of realistic reach, for the foreseeable future?
 
sear said:
There's an unsubstantiated notion that the U.S. can reasonably expect a certain GDP. Some that assume that, criticized Obama's recovery from the Bush recession, because they said our recovery GDP wasn't high enough.
This GDP expectation has developed over centuries of history.

My question:

That expectation developed under conditions which due to globalization and other factors no longer exist.

Are those in pursuit of this historic standard of GDP actually seeking a will-o’-the-wisp, and not aware of it?

Has a subtle paradigm shift placed this historic standard out of realistic reach, for the foreseeable future?
Click to expand...
For emerging markets, it's expected. For our mature market, we rely only on boom/bust cycles, so we never sustain any real growth. In essence, our economy is a facade.
 
Althea said:
For emerging markets, it's expected. For our mature market, we rely only on boom/bust cycles, so we never sustain any real growth. In essence, our economy is a facade.
Click to expand...

It doesn't have to be that way. Debt will eventually bring this house of cards down. Neither side is talking about curbing spending in any way, shape, or form. In fact, more spending is the soup of the day.
 
"we rely only on boom/bust cycles" A #94
Click to expand...
The boom / bust cycle is familiar to economists.

My question to you:

a) Do you think it's possible for the fed to minimize the extremes by modulating interest rates (monetary policy)?

b) If so, should it?

c) If it can't, if interest rates don't control that, should something else be done about it?
 
archives said:
Truth be told, it is a continuation of the Obama economy, economic indicators aren't reset at zero every time a new President takes office, the only thing this President has done is not screw it up, yet
Click to expand...

Nah, consumer confidence went up after the election.

Welcome to the Trump economy. Get used to winning.
 
You must log in or register to reply here.
Back
Top