Free Republic

U.S. economic growth slowed less than previously estimated in the fourth quarter as the biggest gain in consumer spending in three years partially offset the drag from a jump in imports. Gross domestic product expanded at a 2.9 percent annual rate in the final three months of 2017, instead of the previously reported 2.5 percent, the Commerce Department said in its third estimate for the quarter on Wednesday. That was a slight moderation from the third quarter’s brisk 3.2 percent pace. The upward revision to the fourth-quarter growth estimate also reflected less inventory reduction than previously reported. Economists polled by...

In a blog post published this morning, the White House explains why historic economic data has been updated. "The comprehensive revision to the national accounts, which is the first since July 2009, includes additional source data received by the Bureau of Economic Analysis, as well as methodological changes designed to better reflect the evolving nature of the U.S. economy," writes Alan B. Krueger, chairman of the Council of Economic Advisers. "This morning the Bureau of Economic Analysis released a comprehensive revision to the National Income and Product Accounts, covering the full history of data since 1929. The revision showed that...

Revised Q2 GDP printed at 1.7% and that was higher than expected (1.0%), but lower than the previous print of 1.8%. And that print of 1.8% was revised downward to 1.1%. realgdp17 The GDP revision polka (pre- and post-revisions): GDP pre post revision Personal consumption growth, a large piece of real GDP, slowed to 1.8% in Q2 from a downward-revised 2.3% in Q1, also beating economists’ consensus estimate of 1.6% growth. pce073113 The personal saving rate (personal saving as a percentage of disposable personal income) was 4.5 percent in the second quarter, compared with 4.0 percent in the first quarter....

As many a former factory worker can attest, U.S. companies have invested so heavily in technology that some plants now practically run themselves. This illustrate a rethinking under way on how to measure economic output, a discussion that is leading to an overhaul of government data this week that will show the U.S. economy is a bit larger than previously thought. This will change on Wednesday when the Commerce Department releases decades of revised data that will include R&D as a category of investment. Under the new framework, R&D added about $300 billion to GDP in 2010. This could give...