The second-quarter U.S. gross domestic product has been revised slightly higher to 1.7% in its first revision. The initial Q2 GDP was originally reported as being up 1.5% and both Bloomberg and Dow Jones had been expecting the same 1.7% growth that we saw this morning.
Today’s report from the Commerce Department reflects slightly better gains in trade and in consumer spending along with government spending. The confirmed rise keeps the “positive GDP” trend in tact for what is now 12 consecutive quarters at a time when unemployment remains well above the 8.0% mark.
It is also important to remember that this is a revision looking back to the second quarter. Since June we have seen many of the regional and national reports turn either into the red or at least have shown expectations for lower implied growth rates.
Today’s news is not likely to have a major impact on the markets and likely will not be enough to change whatever Ben Bernanke will say at the economic symposium in Jackson Hole this coming Friday.
JON C. OGG