“The U.S. economy’s growth rate last quarter was revised upward to the fastest in three years on stronger investment from businesses and government agencies than previously estimated, Commerce Department data showed Wednesday,” Sho Chandra reports for Bloomberg. “The latest results for GDP, the value of all goods and services produced, show the economy withstood major hurricanes to reach a more solid footing as it entered the final stretch of the year.”
“While the revised growth rate is in line with President Donald Trump’s goal, economists generally see such a pace as unsustainable and expect growth to slow sometime in 2018,” Chandra reports. “The biggest improvement came in business investment, which made a 1.2 percentage-point contribution to growth, up from 0.98 point in the initial estimate a month ago. In addition to greater spending on transportation equipment, the data also reflected more software spending.”
“Corporate profits grew, albeit at a slower year-over-year pace than in the prior period,” Chandra reports. “After-tax incomes adjusted for inflation increased at a 0.6 percent annual pace, revised from 0.5 percent; saving rate revised to 3.3 percent from 3.4 percent”
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MacDailyNews Take: A stronger U.S. economy, especially regarding employment and disposable income gains, obviously bodes well for Apple.
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