While the second quarter is now ancient history and the debate is how much the predicted rebound in Q3 GDP will fade into Q4 which is set to begin in just three days, moments ago the BEA released its final revision for Q2 GDP, according to which real GDP increased 1.4% in the second quarter of 2016, 0.3 % higher than the ‘second’ estimate released in August, and fractionally higher than the 1.3% expected. In the first quarter, real GDP rose 0.8 percent.
As we have reported previously, the increase in real GDP was more than accounted for by an increase in consumer spending which amounted to more than 200% of the bottom line annualized GDP print. Spending on nondurable goods increased, notably on food and beverage grocery items. Spending on durable goods increased, notably on recreational goods and vehicles. And spending on services increased, notably on health care (thanks Obamacare) and on housing and utilities.
This post was published at Zero Hedge on Sep 29, 2016.