More numbers are in and there are revisions to the US government’s second and third quarter economic data reports. Not that it matters, really, as they are lagging numbers, but they do show a stronger continuation of the economic pattern that has been happening now for years.

  • The economy in the U.S. expanded more than previously forecast in the third quarter, reflecting bigger gains in consumer spending and business investment and capping the strongest six months of growth in a decade.

True, there were not-so-pretty revisions in there that could give pause, but those are more than offset by the current reality.

  • Revised data for the second quarter showed the previously estimated increase in wages and salaries was cut almost in half and corporate profits last quarter rose less than in the prior three months.

Again, neither is important in the pattern building, as today’s numbers on wages and corporate profit offset those from the second quarter and third quarters.

  • Gross domestic product, the value of all goods and services produced, rose at a 3.9 percent annualized rate, up from an initial estimate of 3.5 percent, After the 4.6 percent increase in the second quarter, it marked the biggest back-to-back advance since late 2003.

Yup, the US economy is on a roll, a big roll, and when Europe begins kicking up its buying power, watch out. US manufacturing and US services are ready to accommodate.

  • Business investment increased at a 6.2 percent annualized rate, revised up from a previously estimated 4.7 percent gain. The improvement reflected more spending on new equipment.
  • Inventories were also less of a drag on growth last quarter. Stockpiles grew at a $79.1 billion annualized rate from July through September, more than previously estimated

Serving as the foundation for all of the above economic improvement is the resilient and more employed US consumer.

  • Consumer spending, which accounts for about 70 percent of the economy, grew at a 2.2 percent annualized rate in the third quarter compared with the previously estimated 1.8 percent. The improvement was spread across durable and non-durable goods, including recreational vehicles and restaurant meals.

I did say “more employed” right? Well, there is a reason for that, even if the current meme in the world of financial punditry is that the US employment picture is not accurate.

  • As consumers boost spending on the back of the strongest jobs growth since 1999, companies such as Wal-Mart may benefit. The world’s largest retailer posted third quarter earnings that beat analysts’ estimates this month as same-store sales grew for the first time in seven quarters.

As I said, the numbers coming out now don’t really matter. What matters is the reality of today’s economy and the market that reflects that economy.

  • Companies such as Wal-Mart (WMT) Stores Inc. are seeing the benefits of the steadily improving economy as a strengthening labor market and gains in sentiment underpin consumer spending.

Yup! The US consumer is feeling better and it is showing in everything that is happening in the market. Corporate profits might have improved less in the third quarter than they did in the second, but, numbers in small contexts have a funny way of skewing a large picture. The reality is that whatever profits lacked in the third quarter might well show up in the fourth quarter, and beyond.

  • Deliveries of new cars and light trucks in 2015 will probably total 16.7 million, the average estimate of 12 analysts surveyed by Bloomberg News and the most in a decade. That bodes well for factory production.

No reason yet to change the plan. BTFD and keep on making money. It’s simple.

Trade in the day; invest in your life …

Trader Ed