Macro Commentary
It’s a gift. Just a little extra before the start of the New Year. The final reading on Q3 GDP in the United States was lifted up a bit more to 3.5% (over 3.2% prior estimate). Consumer spending, which represents around two-thirds of economic activity, picked up the pace as did business investment. There was also an increase in spending on “non-residential structures” which happens to include the type of capital outlays for developing oil and gas wells. Keep in mind, all of this happened prior to the November election which has seemed to invigorate business expectations. The incoming administration will depend on the follow through of “private dollars” being deployed in hiring/investment in order for the proposed tax cut and fiscal spend policy to get the multiplier effect for in the actions to be accretive. While the market trading activity falls going into next week, all eyes will remain on the initial legislation a Republican-controlled Congress can move through both houses in order to deliver on the high expectations and carry this level of economic growth into 2017.