November 27, 2019
More signs the U.S. economy is very strong show up today as several key economic indicators defy prior economist predictions. Staring with a significant upward revision by the Bureau of Economic Analysis for the third quarter GDP growth from 1.9% to 2.1%:
The revision to GDP reflected upward revisions to inventory investment, business investment, and consumer spending.
The increase in consumer spending reflected increases in both goods (notably recreational goods and vehicles as well as food and beverages) and in services (led by housing and utilities as well as food services). (link)
Additionally, the commerce department released data showing U.S. core capital goods orders increased 1.2% in November, the largest gain since January; and more data on home sales shows a whopping 31.6% increase year-over-year.
U.S. consumers and home buyers are benefiting from low inflation and significant blue collar wage gains that are an outcome of a growing economy and a very strong jobs market. The most significant wage growth is in non-supervisory positions. The economic strength is broad-based and the U.S. middle-class is confident.
Charles V Payne✔@cvpayne
Breaking Economic News News
GDP revised higher to 2.1% beatings consensus
Durable Goods +0.6% crushes consensus
Business Investment +1.2% really crushes consensus
Sec. Wilbur Ross✔@SecretaryRoss
I’m thankful for @realDonaldTrump‘s focus on restoring American manufacturing. Great news as U.S. manufacturers beat market expectations on durable goods orders and shipments in October: https://www.census.gov/manufacturing/m3/adv/pdf/durgd.pdf …
Sec. Wilbur Ross✔@SecretaryRoss
GDP growth beat market expectations again in latest revision: 2.1% growth fueled by strong computer spending. The @realDonaldTrump economy continues to deliver for the American people: https://www.bea.gov/news/2019/gross-domestic-product-third-quarter-2019-second-estimate-corporate-profits-third-quarter …
Sec. Wilbur Ross✔@SecretaryRoss
New home sales estimates hit 733,000 in October 2019, a 31.6% increase from October, 2018. More Americans are achieving the dream of owning a home! https://www.census.gov/construction/nrs/pdf/newressales.pdf …
David ShoelessJoe@yohiobaseball
.@TheLastRefuge2 Big News!
U.S. core capital goods orders post biggest gain in nine months
“These so-called core capital goods orders were boosted by increased demand for machinery, computers and electronic products and fabricated metals.” https://mobile.reuters.com/article/amp/idUSKBN1Y11ME?__twitter_impression=true …U.S. core capital goods orders post biggest gain in nine months
New orders for key U.S.-made capital goods increased by the most in nine months in October and shipments rebounded, suggesting some stabilization in business investment after it contracted for two…
mobile.reuters.com
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