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The US economy expanded even faster than we thought last quarter

By Melvin Backman

The Bureau of Economic Analysis updated last quarter’s economic growth number, and it looks like the economy is expanding faster than the agency initially estimated:

And if you strip out all the goods sitting around in warehouses and stock rooms to just look at goods sold, the situation looks even better:

It also looks like non-housing investment is getting back to normal:

The numbers are better than many anticipated—the consensus held that GDP was actually going to be revised downward. If this pattern continues, the Federal Reserve might face even more pressure to raise interest rates in the earlier part of next year than economists are already expecting.