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