The economic growth of U.S. was revised downward but the 2.5 percent annual rate is still a good indicator in the last quarter of 2017 as they focus less on investment and restocking of shelves compared to the earlier forecast of the government. The total output of goods and services by the economy lead to an increase in the gross domestic product after the 3.1 percent growth at a seasonally adjusted annual rate from three months to June and 3.2 percent in another three months, based on the data from the Commerce Department on Wednesday. Meanwhile, consumer spending rose at the fastest pace since the spring of 2016 despite the decline of purchases in furniture and clothing, which was counterbalanced by high spending on services such as utilities. The downward revision has slowed down the business spending by adding their stock collection and weaker business investment on structures and intellectual properties. Different small revisions pushed the GDP lower from the previous forecast of 2.6 percent rise. Although, small changes would not have much of an effect on the optimistic analysis of the economy following the testimony of Federal Reserve Chairman Jerome Powell to the Congress. As a whole, the Federal Reserve ended in a good condition last year, which then lessen the probability of changing its economic perspective, according to the TD Economics’ senior economist.
