Wednesday, March 11, 2015

Good news?


(Reuters) - U.S. economic growth for the fourth quarter is likely to be revised higher after data on Wednesday showed a more robust pace of consumer spending than previously estimated.
The Commerce Department's quarterly services survey, or QSS, showed consumption, including healthcare spending, increased at a faster clip than the government had assumed in its second estimate of gross domestic product published last month.
Economists said the data suggested fourth-quarter consumer spending could be raised by at least six-tenths of a percentage point to a 4.9 percent annual rate when the government publishes its third GDP estimate later this month.
"That would be the strongest quarter for consumption since 2003. A stronger trend for consumption could carry over into the first quarter, but we want to see the monthly details before changing our views on first-quarter growth very much," said Daniel Silver, an economist at JPMorgan in New York.
Well, good that the consumers are covering their own healthcare expenses and dumping less of them on DC.  I would say good.

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