US economy shows upward trend in Q4

Bloomberg

The US economy grew in the fourth quarter at a faster pace than previously reported on higher consumer spending, Commerce Department data showed Thursday in Washington.
Gross domestic product rose at a 2.1 annualized pace (forecast was for 2 percent), revised from 1.9 percent. Consumer spending, the biggest part of the economy, rose at a 3.5 percent rate, revised from 3 percent; added 2.4 percentage points to growth, revised from 2.05 points.
Corporate profits in the US jumped 9.3 percent from a year earlier, the most since 2012, and rose 0.5 percent from the previous three months, in the first estimate for the fourth quarter. Trade subtracted 1.82 percentage points from growth, the most since 2004, compared with the prior estimate of a 1.7-point drag, on weaker exports and higher imports.
The data reinforce the underlying story of the US economy: the seven-year expansion continues to be led by consumers, who are cushioned by a firm labor market and rising confidence. At the same time, rising corporate profits could provide continued momentum for hiring and support further capital investment. Analysts expect first-quarter growth of about 1.9 percent, while the Trump administration has said its policies will eventually result in a 3 percent pace or greater.
Upward revision to consumption reflects spending on net foreign travel and recreation services, as well as gasoline and other energy goods Nonresidential fixed investment revised lower on intellectual-property products, reflecting Census data and company financial reports Data represent the last of three GDP estimates for the quarter before annual revisions in July Pre-tax corporate profits were down 0.1 percent for all of 2016, after a 3 percent drop in 2015 Inventories added 1.01 percentage point to growth, revised from 0.94 point Stripping out inventories and trade, so-called final sales to domestic purchasers increased at a 2.8 percent rate, revised from a 2.6% pace.