GDP Rose More Than Expected; Stocks Top Record Again
As recently as Thursday, the GDPNow forecast designed by the Atlanta Federal Reserve Bank, some of the world's best economists, updated its growth projection to 1.3%. To be clear, the Atlanta Fed's real time forecast of 1.3% on Thursday underestimated the actual rate of growth announced by the government on Friday morning by 60%! An independent real-time projection by the New York Federal Reserve Bank, for 1.5% growth, also sharply underestimated actual second quarter growth of 2.1%.
Consumer spending — which accounts for 70% of U.S. economic activity — fueled the confounding growth. Personal consumption expenditures spiked.
Despite declines in two of the four factors in U.S. growth — net exports and business investment — the surprising surge in consumer spending drove GDP to grow faster than what generally had been expected.
- S&P 500 Breaks All-Time Record Again
- Steady Economy Briefly Drives Dow Beyond 29,000
- Why Stocks Shrugged Off Iran Escalation
- A Spectacular Year For Stocks
- A Case For A Bull Market In 2020
- Good Economic News Again
- An Unusual Constellation Of Economic Surprises
- Longest U.S. Expansion Keeps Rolling
- Retirement Income Reality Check
- Find The Major Economic Trend Hidden In This Picture
- Is The New Record High In Stocks Irrational?
- Stocks Break New Record; Economic Outlook Clears
- Despite Frights, Can The Expansion Continue?
- Retail Sales Coverage Reflected The Narrow View Of The Media
- Small-Business Optimism Declines But Remains High