US GDP QoQ Grows At 3.3% Pace, Fastest Since 2014 (Equipment Purchases Lead The Way) – Yield Curve 10Y-2Y Steepens

This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.

Share!Tweet about this on TwitterShare on FacebookShare on LinkedInEmail this to someonePrint this page

According to the BEA, US Gross Domestic Product (GDP) grew at a 3.3% QoQ (Annualized) pace, the highest since 2014.

But what drove the rise in Q3 GDP growth of 3.3%? It wasn’t personal consumption expenditures (PCE) that actually fell from 3.3% in Q2 to 2.3% in Q3. The big contributer was gross private domestic investment that rose from 3.9% in Q2 to 7.3% in Q3.

equipdriver.png

And leading the investment charge was nonresidential equipment purchases, rising to 10.4 in Q3. This has been the highest sustained rise in equipement purchases since the US exited The Great Recession.

gdpequip

On the news, the 10-year Treasury note yield rose around 6 basis points.

10yrise

And the US Treasury 10Y-2Y curve steepened to over 60 basis points.

yc10pivk

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Leave a Reply