Jaw-Dropping Report Says U.S. Economy Is Doing Great
U.S. Economy Had Its Strongest Quarterly Growth in Two Years
Remember the sluggish growth in the U.S. economy in the first half of this year? Well, according to the latest estimate of a major indicator, things were much better in the third quarter.
On Thursday morning, the U.S. Commerce Department said that real gross domestic product (GDP) increased at an annual rate of 3.5% in the third quarter of 2016. This is the third and final estimate and is better than the previous estimate of a 3.2% growth. (Source: “National Income and Product Accounts,” Bureau of Economic Analysis, December 22, 2016.)
This was the strongest growth in real GDP since the third quarter of 2014. The number also turned out to be better than economists’ expectation of a 3.3% expansion.
The upward revision in real GDP growth was due to upward revisions to nonresidential fixed investment, personal consumption expenditures, and state and local government spending.
In particular, consumer spending grew a solid three percent in the third quarter, while nonresidential fixed investment was up 1.4%.
Solid growth in the U.S. economy in the third quarter backed the Federal Reserve’s decision to raise its benchmark interest rates earlier this month. The U.S. central bank raised rates by 25 basis points to a range of 0.50% to 0.75%. Although the Fed only raised rates once this year, it forecast three rate hikes in 2017.
GDP data is not the only thing indicating strength in the U.S. economy lately; the labor market has been growing at an impressive pace. The latest jobs report from the U.S. Department of Labor suggests that nonfarm payroll employment increased by 178,000 in November, with the unemployment rate falling to 4.6%, marking its lowest reading since August 2007. (Source: “The Employment Situation—November 2016,” Bureau of Labor Statistics, December 2, 2016.)
The U.S. economy has been adding an average of 180,000 jobs per month so far this year. November also marked the 74th consecutive month in which America added jobs.
Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All registered trademarks are the property of their respective owners
Sign up to receive our FREE Income Investors newsletter along with our special offers and get our FREE report:
5 Dividend Stocks to Own Forever
This is an entirely free service. No credit card required. You can opt-out at anytime.
We hate spam as much as you do.