Things Are Getting Better {07.30.14}

The Bureau of Economic Analysis {BEA} calculates that GDP grows 4% in 2nd Quarter versus estimates of 3%.  Revises 1st Quarter GDP up to a negative 2.1% from a negative 2.9%.  Personal consumption increases 2.5% versus 1.9% estimates and a revised 1.2% in the first quarter.  Here's the key takeaway from the BEA's statement.

"The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, exports, nonresidential fixed investment, state and local government spending, and residential fixed investment."

In other words with the exception of Federal government expenditures, spending increased across the board.  It's important to remember that these GDP numbers will be revised, likely lower.  But these are good numbers.  They support the theory that the economy's contraction in the first quarter was largely weather related.  These economic increases {should they not be revised incredibly lower in the future} are supportive of stocks going forward as they indicate the economy is on track for growth.

Link:  Business Insider:  GDP Surges 4% in Q2.