SOURCE: BMO Financial Group
CHICAGO, IL--(Marketwired - Sep 26, 2013) - Some good news for the U.S. as the economy grew at a 2.5 per cent annualized rate in the second quarter. Various components of the GDP showed much needed improvement according to a report by BMO Economics.
According to Jennifer Lee, Senior Economist, BMO Capital Markets, "Business investments were up at a 4.7 per cent annualized rate, higher than the preliminary estimate of 4.4 per cent, thanks to a lift from structures and equipment; however, intellectual property was revised lower."
Residential construction was revised up as well, and inventories did not rise as much, nor did government spending contract as much as preliminary estimates had forecast. Consumer spending was the same, rising 1.8 per cent, and the Core Personal Consumption Expenditure Deflator did not rise as quickly. The special aggregates, such as final domestic demand, final sales and gross domestic purchases, were all revised a tad higher. "So all in," Ms. Lee said, "this is good news."
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $549 billion as at July 31, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.