The U.S. economy grew in the fourth quarter at a faster pace than last estimated, helped by an upward revision to household spending on services and a smaller drag from inventories, according to Commerce Department data released Wednesday.
Highlights of Fourth-Quarter GDP (Third Estimate)
Gross domestic product grew at a 2.9% annualized rate, (est. 2.7%) revised from 2.5%.
Consumer spending, biggest part of the economy, grew 4% (est. 3.8%) revised from 3.8%.
Before-tax corporate pretax profits rose 2.7% y/y in the first estimate issued for the fourth quarter; climbed 5.3% in third quarter.
Inventories subtracted 0.53 ppt from GDP growth, compared with prior estimate of 0.7 ppt drag.
Nonresidential fixed investment rose 6.8%, revised from 6.6% gain and reflecting a 6.3% jump in outlays for structures (prev. est. 2.5%).
Gross domestic income, adjusted for inflation, rose 0.9 percent following 2.4% gain in third quarter
The revisions to GDP, the value of all goods and services produced in the U.S., indicate the economy was on a solid footing coming into the current quarter.
The report also included the first look at the health of corporate America toward the end of 2017. The gain in fourth- quarter profits from a year earlier, together with lower corporate taxes following the tax overhaul signed by President Donald Trump late last year, bodes well for business investment and employment.
Source : Bloomberg