Better GDP

by Laura Ehrenberg-Chesler on July 28, 2017

in Economic Indicators,equity market,inflation/deflation

This morning we got a good read on second quarter GDP, up 2.6% and just shy of the 2.7% expectation. The number is a welcome change from the 1.2% figure from the first quarter.

We are in the third longest, but also the slowest, expansion since WWII with growth averaging around 2% for the past eight years. The details of the report were mostly positive as both business and consumers participated in the advance. In fact, the index of Consumer Confidence recently rose to its second highest level in 16 years. Business confidence is high as well with an upbeat outlook on spending and investment.

Better growth coupled with subdued inflation should continue to create a constructive backdrop for the stock market.

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