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This week the government released the second estimate of third quarter U.S. GDP at 33.1% growth at an annual rate, unchanged from the earlier advanced estimate. This is a sharp snapback from second quarter's 31.4% contraction. Of course this significant swing is a result of the virus mandated economic shutdown and reopening.
Although virus cases have increased near term, the reopening process continues and is reflected in improved earnings growth as well. With the second reading on GDP the Bureau of Economic Analysis (BEA) reports the underlying detail from the National Income and Product Account, the component detail that goes into the GDP calculation. This week's BEA GDP report shows third quarter NIPA after tax corporate profits without inventory valuation & capital consumption adjustments reached a record $2.1 trillion.
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