U.S. Sec­ond-Quar­ter Growth Re­vised up to 4.2%

The Bond Buyer - - Market News -

The U.S. econ­omy ex­panded in the sec­ond quar­ter at a slightly faster pace than pre­vi­ously es­ti­mated on re­vi­sions to im­ports and soft­ware spend­ing, bol­ster­ing the strong­est pe­riod of growth since 2014, ac­cord­ing to Com­merce Depart­ment data re­leased Wed­nes­day.

Gross do­mes­tic prod­uct grew at a 4.2% an­nu­al­ized rate (es­ti­mates were for a 4% rise), re­vised up from 4.1% in the prior es­ti­mate. Growth was the fastest since the third quar­ter of 2014.

Con­sumer spend­ing, the big­gest part of the econ­omy, grew 3.8% (es­ti­mates were for 3.9%), re­vised from 4%, which re­flects down­ward re­vi­sions in mo­tor ve­hi­cles, non­durable goods, and health care.

Cor­po­rate pre­tax prof­its rose 7.7% year over year and 3.3% quar­ter over quar­ter, both the most since 2014, in the first es­ti­mate is­sued for last quar­ter. This fol­lows a 5.9% year over year rise in first quar­ter and marks seventh straight year over year gain.

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