GDP Rose More Than Expected; Stocks Top Record Again

U.S. real gross domestic product (GDP) increased at an annual rate of 2.1% in the second quarter of 2019, according to the Bureau of Economic Analysis. In the first quarter, real GDP increased 3.1%, but many forecasts had expected GDP to decelerate more sharply.

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.

To Read the Full Story, Subscribe or

This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation.

Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.

2020

2019

2018

2017

2016

2015

Tell A Friend

Investment Updates

Company Info

701 5th Ave, Ste 4200
Seattle, WA 98104

Mailing address:
1777 S Burlington Blvd, #523
Burlington, WA 98233


Phone: 844-443-4321
Fax: 844-443-4322


info@prismadvisor.com