The U.S. Commerce Department reported this morning that the U.S. economy grew at an annual rate of 1.7 percent in the 2nd quarter, up from consensus estimates of 1.0 percent and higher than the 1.1 percent revised annual rate in the first quarter of 2013 that was formerly reported as 1.8 percent.
Many economists were expecting an economic decline in the 2nd quarter of 2013 due to budget related sequester cuts which gained traction in the 2nd quarter combined with higher taxes for Americans and waning global demand from Asia and Europe.
On Wednesday the latest ADP report for July showed that the private sector added 200,000 jobs in July, beating the 175,000 estimate from briefing.com.
Investors are still awaiting for the closely watched jobs report on Friday that reveals the July non-farm payroll number and unemployment rate released from the Labor Department.
Estimates from briefing.com are for 175,000 jobs and the unemployment rate lowering to 7.5 percent from 7.6 percent in June.
In 2013 new U.S. jobs have increased to above 200,000 on average, a positive sign that the economy is improving in the labor market as inflation is moving higher in the 1 percent range but is still below the Fed’s 2 percent target.
Investors are also waiting for news later in the day from the 2 two day Fed meeting in Washington D.C. related to the Fed’s decision about interest rates and their Fed statement which could signal whether the Fed may need even more time and economic data to safely conclude they are ready to begin tapering their $85 billion monthly quantitative easing program.
* Earlier today for about 30 minutes the revised GDP figure for the first quarter GDP was not included in the original post