Arab Today, arab today us economy grew at robust 42 pace in second quarter
Last Updated : GMT 13:35:08
Arab Today, arab today
Arab Today, arab today

US economy grew at robust 4.2% pace in second quarter

Arab Today, arab today

Arab Today, arab today US economy grew at robust 4.2% pace in second quarter

Employees inspecting eggs
Washington - AFP

The US Commerce Department raised its estimate for US economic growth to 4.2 percent Thursday, confirming the solid rebound from the first quarter's steep contraction.
The department said a fuller set of data showed a higher level of fixed investment by companies and the government, contributing to the 0.2 point upward revision from July's number.
It also showed strong gains in corporate profits, possibly boosting the prospects for more hiring that would remove some of the persistent slack in the labor market.
Analysts said the revision improved the picture of the US economy for the rest of 2014, when added to recent monthly data on industry, hiring and general confidence.
"While the impact of the revision on the IHS forecast is relatively small, the changes have positive implications for growth in the second half of this year," said Doug Handler at economic consultancy IHS Global Insight.
The 4.2 percent annual pace in the April-June period followed a 2.1 percent contraction in the first quarter, the consequence mainly of unusually severe winter storms that had battered the eastern half of the United States, depressing economic activity.
In the second quarter, the revised data showed pickups in consumer spending and business investment, and improved government spending and home building.
On the other hand, gross domestic product was dampened by an increase in imports, not surprising given the rebound in activity after the first quarter, analysts say.
The new report left its key inflation indicator unchanged: the price index for gross domestic purchases stayed at 1.9 percent, up from 1.4 percent in the first quarter.
The threat, or lack of, inflation has been key to debates over whether the Federal Reserve needs to tighten monetary policy sooner rather than later to prevent price increases from getting out of hand.
The report also showed that corporate profits and spending mostly recovered from the first quarter downturn.
Jay Morelock of FTN Financial called that "a welcome development that will hopefully lead to hiring in the second half of the year."
"Once wages follow the upward trend in business spending, a prosperous cycle could lift the economy toward the 3.0 percent trend that remains a fixture of consensus forecasts and stock price assumptions."
The economy's rebound has not been uniform, as Federal Reserve Chair Janet Yellen has repeatedly pointed out.
Though job creation has picked up, there remain a huge number of people underemployed or out of the labor market, and wages have remained fairly flat in the recovery from the 2008-2009 recession.
Jim O'Sullivan of High Frequency Economics pointed out that the revised data showed lower nominal growth in wages in the second quarter than previously estimated, 4.7 percent year-on-year instead of 4.9 percent.
However, he said, "the data suggest that average hourly earnings are understating the extent to which tightness in the labor market is putting upward pressure on costs and boosting consumer spending power."
Economists took the report and other fresh data -- including a pickup in pending home sales in July that demonstrated the resilience of the housing comeback -- and projected that the economy in the third quarter would grow at pace of 3.0 percent or better. IHS stuck to its high 3.6 percent forecast.
Markets, which after a runup to record levels have been looking for any sign of growth at a pace that would ignite inflation and force the Fed to raise rates, fell slightly. The S&P 500 was down 0.2 percent around midday; Treasury bond prices fell only marginally.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us economy grew at robust 42 pace in second quarter Arab Today, arab today us economy grew at robust 42 pace in second quarter

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday