Afternoon Coffee: U.S. GDP Growth Jumps to 4.1%, Hershey Raises Prices on Higher Ingredient Costs

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The U.S. economy expanded at a rate of 4.1% in the second quarter, the fastest pace since 2014, Bloomberg reports. Although the likelihood of the U.S. sustaining such a growth rate amid rising trade tensions is uncertain, the data, accompanied by a 4% rise in consumer spending, painted a rosy picture of an economy now its eight year of expansion.

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Ingredients Prices

Hershey will hike prices for its candies and snacks 2.5% on average amid rising costs for ingredients and shipping, The Wall Street Journal reports. In addition to the increase, Hershey is also looking to streamline its supply chain by optimizing its roster of size variations and seasonal candy assortments and more accurately forecasting its trucking requirements.

Amazon Earnings 

Amazon boosted its stock price 4.2% in premarket trading Friday after it reported its biggest quarterly profit total in company history, according to MarketWatch. Revenue at the e-commerce giant totaled $52.9 billion, up from $37.96 billion a year ago. Most of the profit increase came from improved operational efficiencies, including both higher margins in Amazon’s retail business and decreased external hiring compared with last year.

Durable Goods 

And finally, an economic update: Demand for and shipments of U.S. durable goods surged in June, rising 0.6% in the month, CNBC reports. The solid growth in business spending supported the reasoning behind the Trump administration’s 2017 tax cut plan, which was in part designed to encourage spending on capital goods.

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