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Here comes GDP ...

Dec 21, 2017, 18:46 IST

A worker assembles a pinball machine at Stern Pinball in Melrose Park, just outside Chicago, Illinois, July 10, 2013. According to Stern Pinball, they are the only makers of arcade quality pinball machines in the world and produce about 10,000 machines annually, which are shipped all over the world.REUTERS/Jim Young

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The Commerce Department will release its third estimate of US economic growth in the third quarter at 8:30 a.m. ET.

Gross Domestic Product (GDP), the total value of every thing and service produced in the US, was reported at 3.3% in the second estimate last month. This was stronger than economists had expected and was the best level since 2014.

It was also above the 3% pace that President Donald Trump had promised for the US economy while he was campaigning. A strong fourth quarter with growth around this pace will be needed to achieve 3% GDP on an annual basis.

The House passed the final version of the GOP's tax bill on Wednesday, ending a seven-week push to put the monumental piece of legislation on Trump's desk by Christmas. Republicans expect the extra disposable income that consumers get and wage increases from corporate tax cuts to boost economic growth.

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But with the impact still largely unknown, some economists are forecasting only a small increase to growth in the years ahead. The Federal Reserve said last week that tax cuts were a factor supporting its modestly stronger outlook, but warned that there's still uncertainty.

More to come ...

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