Second quarter even stronger than it first looked: GDP raised to 4.2% from 4.1%
Gross domestic product expanded at a 4.2% annual pace in the second quarter, up from a preliminary estimate of 4.1%, the government said. GDP is the official measuring stick for the U.S. economy.
Economists polled by MarketWatch had forecast GDP to be left unchanged at 4.1%.
The strong growth, along with the biggest tax cuts in 31 years, helped fill corporate coffers.
Adjusted corporate profits before taxes climb 3.3% in second quarter and they were up a sizzling 7.7% over past year. That’s the biggest 12-month gain in four years.
What happened: Consumer spending will still quite strong in the second quarter, though a bit less so than previously believed. The government said outlays rose 3.8% instead of 4%.
Yet the value of unsold goods, or inventories, was still a big drag on second-quarter growth. They fell at a revised $27 billion annual rate.