Today the Commerce Department released its revised estimates for second-quarter GDP growth, which came in at 2.5%.
Initial economic reports often get revised in later estimates as more data comes in. (Sometimes they even get revised decades later.) For instance, second-quarter GDP growth was initially thought to be 1.7% at the end of July, but August revisions showed it to be closer to 2.5%, which is where it remains today. That's just one more reason not to overreact to a single report when you're making investment decisions. Investing is about watching the bigger picture, rather than responding to minor adjustments in discrete metrics.
Here's the bigger picture:
Here's how that looks historically:
With the exception of the 2011 congressional showdown that nearly produced another financial crisis, real GDP growth has been ticking along at a moderate -- if not exactly electrifying -- pace for the past few years.
Growth unadjusted for inflation was revised down slightly to 3.1%. The report, which also measures corporate profits, showed a $37.8 billion increase in nonfinancial domestic corporate profits, up from a $3.1 billion decline in the first quarter, due to improvements in retail and utilities, though there was a decline in petroleum and coal profits.
Ilan Moscovitz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.