“U.S. economic growth was a bit stronger than initially thought in the second quarter, notching its best performance in nearly four years, as businesses boosted spending on software and imports declined,” Reuters reports. “Gross domestic product increased at a 4.2 percent annualized rate, the Commerce Department said on Wednesday in its second estimate of GDP growth for the April-June quarter. That was slightly up from the 4.1 percent pace of expansion it reported in July and was the fastest rate since the third quarter of 2014.”

“Businesses spent more on software than previously estimated in the second quarter and the nation also imported less petroleum,” Reuters reports. “Compared to the second quarter of 2017, the economy grew 2.9 percent instead of the previously reported 2.8 percent. Output expanded 3.2 percent in the first half of 2018, rather than 3.1 percent, putting the economy on track to hit the Trump administration’s target of 3 percent annual growth.”

“While consumer spending has remained strong early in the third quarter, the housing market has weakened further with homebuilding rising less than expected in July and sales of new and previously owned homes declining,” Reuters reports. “Growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, was lowered to a 3.8 percent rate in the second quarter instead of the previously reported 4.0 percent pace. Consumer spending increased at a 0.5 percent pace in the first quarter.”

“Overall exports rose at a 9.1 percent rate in the second quarter instead of the previously estimated 9.3 percent pace. Imports declined at a 0.4 percent rate, with petroleum accounting for much of the drop. Imports were previously reported to have grown at a 0.5 percent pace of increase,” Reuters reports. “That sharply narrowed the trade deficit. Trade added 1.17 percentage points to GDP growth in the second quarter rather than the previously reported 1.06 percentage points.”

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MacDailyNews Take: As CNBC opens their headline:
Boom!

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