U.S. Outlook: What does GDP with a 5.0 handle mean?

Scott Anderson
Posted by Scott Anderson
Chief Economist

The government’s recent estimate that real GDP grew at 5.0% in the third quarter beat economists’ forecasts and triggered a recalibration of our forecasts for 2015.

Graph showing growth & declines in GDP over past several years.Business investment has been a big driver of growth, but will it continue into next year?

Below are highlights of my weekly economic analysis, followed by a link to the full U.S. Outlook report, delivered on Jan. 2.

Key observations:
  • We’ve just had the best two quarters of growth since 2003.
  • Solid business confidence and profits should clear the way for sustained and steady business investment growth in 2015.
  • The U.S. expansion is now broad-based and sustainable into 2015.
  • We’ve recalibrated our forecast for real GDP growth to an annual 2.4% for 2014 and 3.2% for 2015.

Click here to read my full report.

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