US Economy Boomed In The Spring, Grew At 3.9% Rate

Toys-R-Us in Times Square opened at 4pm on Thanksgiving day to accommodate early Black Friday shoppers.

The United States economy grew stronger than expected in the second quarter, driven by dynamic household consumption, according to the third and final estimate of the Department of Commerce released Friday.

“While now small, the influence of the global economy is certain to rise in the future and prompt widespread adjustments by consumers and policy makers”, he said.

“The survey data point to sustained steady expansion of the USA economy at the end of the third quarter, but various warning lights are now flashing brighter, meaning growth may continue to weaken in coming months”, said Chris Williamson, chief economist at Markit. That helps bolster Federal Reserve Chair Janet Yellen’s view that the USA will overcome any fallout from cooling overseas markets and swings in global financial and commodity markets.

US GDP stands now at 17.914 billion.

USA stock index futures added to gains after the data, while Treasury debt prices extended losses and the dollar hit a fresh five-week high against a basket of currencies.

Much of the second-quarter growth was the US catching up after a slow start to the year.

Business investment spending was revised higher, reflecting increased spending on structures and equipment.

BBVA is forecasting a 3.0 percent growth pace for the quarter ending September 30 and 2.5 percent growth for the whole year. Given the 0.6% growth in 2015 Q1 and now the 3.9% in Q2, the USA economy grew at a comfy 2.3% in 2015 so far. Overall, the US GDP climbed 2.7% over the past four quarters.

After-tax corporate profits were also stronger in the second quarter than previously thought.

The USA economy is grower faster than initial figures suggested.

More good news, business investment also accelerated sharply, with a 4.1% growth rate against 3.2% for the second estimate and only 1.6% for the first quarter.

Spending on residential construction, which includes brokers’ commissions, was raised. I have written before about focusing on quarter-to-quarter rates of growth.

The USA’s real gross domestic product: the total value of production, exempting cost of production and adjusting for price changes, grew by 3.9 per cent in the second quarter of 2015. Personal consumption expenditures increased at an annualized 3.6% rate versus 3.1% in the second estimate.

The figures show the economic activity in the U.S. has surged after meagre 0.6pc growth in the first three months of the year.