U.S. GDP Growth Revised Up in Second Quarter

[mahatmakanejeeves]

Source: The Wall Street Journal.

U.S. GDP Growth Revised Up in Second Quarter

The revision to 4.2% partly reflected stronger business investment than earlier forecast and a slight downward revision to consumer spending

By Harriet Torry and Sharon Nunn

https://twitter.com/HarrietTorry

https://twitter.com/sharonmnunn
[e-mail]

Updated Aug. 29, 2018 9:25 a.m. ET

WASHINGTON--Economic growth was stronger during the second quarter than earlier estimated, although growth in a key measure of U.S. corporate profits moderated from the first quarter.

Gross domestic product--the value of all goods and services produced across the economy--rose at a 4.2% annual rate in the second quarter, adjusted for seasonality and inflation, the Commerce Department said Wednesday.

The agency had earlier estimated second-quarter growth at a 4.1% annual rate. Economists surveyed by The Wall Street Journal expected an unchanged reading of 4.1% on Wednesday.

The second-quarter growth rate's revision (1) partly reflected stronger business investment than earlier forecast and a slight downward revision to consumer spending. The 4.2% rate still marked the strongest pace of growth in nearly four years.
....

Write to Harriet Torry at [e-mail] and Sharon Nunn at [e-mail]

(1) https://bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

Read more: https://www.wsj.com/articles/u-s-gdp-growth-revised-up-in-second-quarter-1535546347

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Wait: didn't we just do this, like a month ago? Yes. Here's the thread about that. There were a lot of replies.

US Second Quarter GDP Accelerates to 4.1%

https://upload.democraticunderground.com/10142120215

That was the first estimate. Today's announcement is the second estimate.

The economy did not grow 4.2 percent in the second quarter. It grew at an annual rate of 4.2 percent in the second quarter.

[Watchfoxheadexplodes]

1. I'm all for a great economy

But shit is trump carrying a 🐇 foot?

[exboyfil]

2. If the economy keeps rolling

then Trump may very likely get reelected. Over at National Review they are arguing it doesn't matter what Trump did before he was elected (I wonder where they were during the halcyon days of Whitewater).

[Major Nikon]

3. For some, yes

Meanwhile mean wages have been stagnant for decades. So the rich are getting richer while everyone else is a victim of inflation.

[BumRushDaShow]

4. Two words - TRADE WARS. nt

[exboyfil]

5. Three words

United States Treasury. Already Sonny Perdue is handing out checks. You need to flip all three of the blue "firewall" states or Florida and one of them. Can anyone say that is a lock right now?

[BumRushDaShow]

6. Not enough in the Treasury to pay them ALL off.

There are too many industries being impacted. I.e., it's not just agriculture and "Sonny Perdue". It's also steel and aluminum (i.e., stuff made in the "Rust Belt" states) and all the industries that depend on that.

And from the ag side, it's mostly covering soy but not so much other industries like meat, poultry, and pork in this initial distribution.

Edit to add some excerpts from the above link -

'Trade, Not Aid:' Farmers Are Pushing Back Against Trump's $4.7 Billion Trade War Bailout
This Republican Doesn't Like President Trump's Plan to Aid Farmers
Farmers are set to receive $12 billion.

By David Meyer August 28, 2018


<...>

“As soybean producers head into harvest, we need access to markets from trade deals and a stable Farm Bill, not short-term aid packages,” said Doug Schroeder, vice chairman of the Illinois Soybean Association, in a statement. “More U.S. soy gets exported to China than all other American agricultural products combined. Market access and trade certainty support our families, our businesses and our communities. Short-term aid does not create long-term market stability. Producers need trade, not aid.”

Representatives of other agricultural sectors have expressed frustration that they are getting relatively little, with National Association of Wheat Growers president Jimmie Musick saying the package “shows that the administration isn’t grasping the tough conditions being faced by farmers.”

Politico points out that the USDA structured the bailout plan so that Midwestern states that backed President Donald Trump in the 2016 election—like Iowa and Illinois—will receive hefty sums of cash leading up to the midterm elections in November. Meanwhile, states that grow produce and nuts, such as the liberal stronghold of California, aren’t expected to receive big government checks.

<...>

http://fortune.com/2018/08/28/trump-trade-war-farmer-aid/

[Fiendish Thingy]

7. Interest rates will be going up, Up, UP!

Fed might do a .5% bump (instead of the usual .25%) by the end of the year.

Prepare for a correction in the housing market due to increased borrowing costs- if you're thinking of selling (boomers cashing out to fund retirement), now's probably the time; if you're thinking of buying, waiting a year or two may work in your favor...

Depending on how badly things are mismanaged, a recession by 2020 is a strong possibility.