The BEA released their latest estimate of 3Q GDP, which had a 2.3% Y/Y headline number percentage change. The following table shows that gains were broad:
The pace of Y/Y growth is increasing:
The following charts highlight several important aspects of the report:
Equipment investment (top chart) and, more specifically, industrial equipment investment (bottom chart) have increased for four and six quarters, respectively.
However, residential investment may be topping:
The top chart shows total residential investment while the bottom chart is residential construction. Both have recently stalled.
Consumers continue to spend at a consistent pace:
The top chart shows total PCEs, which have printed between 2.5%-3% for some time. Durables goods spending (middle chart) ticked higher while non-durable goods spending (bottom chart) has improved solidly over the last few quarters.
There is very little to be concerned about in this report.
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