Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Thursday, 26 November 2015

US growth revised up


The US Bureau of Economic Analysis reported in its "more complete" estimate that the US economy grew at a healthier pace in the third quarter than had previously been reported. 

The estimate for GDP growth was revised to a 2.1 per cent pace from the 1.5 per cent advised previously.

That said, the accumulation of inventories is a factor which may temper expectations of growth for the remainder of the year. 

With business spending revised up and consumer spending solid enough this release adds to the ongoing debate, particularly as to whether this will give the US Federal Reserve the confidence to at last hike interest rates, perhaps as soon as next month. 

It's been a long recovery and a long time coming. 

With the unemployment rate falling to just 5 per cent the first rate hike is likely imminent. I recently looked at the latest US payrolls and unemployment data in a bit more detail here