For now, the data show that real GDP on a y/y basis rose only 1.6%, continuing to grow just below the dreaded “stall speed” of 2%, as it has been since the start of the year. However, excluding government spending, it is up to 2.7% from Q1’s 2.1%, suggesting that the private sector may be resuming its relatively steady growth since mid-2010 around 3%.
There was some other encouraging news in the GDP report. While total real capital equipment spending edged down during Q3, industrial equipment spending jumped to a new cyclical high ($195bn saar), R&D spending rose to a new record high ($250bn), and software outlays remained around a record high ($297bn). One more cheery item: Exports rose to a new high, suggesting that the global economy continues to grow and to offer sales opportunities to US companies.
Today's Morning Briefing: Four Shades of Grey. (1) Talking Ed. (2) Three shades of grey scenarios. (3) Latest GDP and employment reports aren’t black and white. (4) Final sales growing slowly. (5) Is Obamacare draining confidence? (6) New highs for R&D and software spending, and exports too. (7) Preliminary payroll data unreliable. (8) YRI Earned Income Proxy at record high. (9) Europe’s recovery is still a slow-go. (10) ECB spooked by deflation. (11) Obamacare is sickening so far, but could be bullish for stocks. (More for subscribers.)
There was some other encouraging news in the GDP report. While total real capital equipment spending edged down during Q3, industrial equipment spending jumped to a new cyclical high ($195bn saar), R&D spending rose to a new record high ($250bn), and software outlays remained around a record high ($297bn). One more cheery item: Exports rose to a new high, suggesting that the global economy continues to grow and to offer sales opportunities to US companies.
Today's Morning Briefing: Four Shades of Grey. (1) Talking Ed. (2) Three shades of grey scenarios. (3) Latest GDP and employment reports aren’t black and white. (4) Final sales growing slowly. (5) Is Obamacare draining confidence? (6) New highs for R&D and software spending, and exports too. (7) Preliminary payroll data unreliable. (8) YRI Earned Income Proxy at record high. (9) Europe’s recovery is still a slow-go. (10) ECB spooked by deflation. (11) Obamacare is sickening so far, but could be bullish for stocks. (More for subscribers.)
No comments:
Post a Comment