U.S. Economy Expanded at Revised 1.4% Rate in Second Quarter

[mahatmakanejeeves]

Source: Bloomberg

U.S. Economy Expanded at Revised 1.4% Rate in Second Quarter

by Sho Chandra

September 29, 2016 — 8:30 AM EDT

Updated on September 29, 2016 — 8:48 AM EDT

The U.S. economy expanded more in the second quarter than previously estimated, reflecting a smaller drag from business spending on structures and equipment.

Gross domestic product rose at a 1.4 percent annualized rate, compared with a prior estimate of 1.1 percent, Commerce Department figures showed Thursday. Gross domestic income, which reflects all the money earned by consumers, businesses and government agencies, was revised to show a 0.2 percent drop rather than a gain.

Households are doing the heavy lifting for the economy, making up for tepid business investment and lackluster demand from overseas. On the heels of robust hiring and nascent wage gains, consumer spending is projected again to drive growth in the third quarter.
....

Household consumption, which accounts for about 70 percent of the economy, was revised to 4.3 percent from a prior estimate of 4.4 percent.

Read more: http://www.bloomberg.com/news/articles/2016-09-29/u-s-economy-expanded-at-revised-1-4-rate-in-second-quarter

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The Wall Street Journal. is pay-per-view:

U.S. Second-Quarter GDP Revised Up to 1.4% Gain

Latest data confirms expansion decelerated in the first half of the year

By Eric Morath

Updated Sept. 29, 2016 11:12 a.m. ET

The growth estimates are revised regularly. There's an earlier thread about an earlier estimate. I'll link to it when I can.

[tonyt53]

1. Growth is still growth.

[Skittles]

3. dismal growth

[forest444]

2. "Household consumption" is what is generally described as "private consumption"

which includes business and non-profits. The real share of household consumption in the U.S. economy - like most other advanced countries - is actually closer to 50% (rather than the 70% frequently parroted).

Having said that, an annualized growth rate of 4% for private consumption is, this late in the recovery, a very strong figure.

[Midnight Writer]

4. Where is my trickle down? I thought business was going to use tax cuts to expand, hire, raise wages

[Igel]

5. That's so '80s.

This is the era of bottom-up growth. You've been expanded, and now it's the turn of businesses and corporations to benefit from your newfound prosperity.