Menu Close

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 published with the permission of Snake Hole Lounge. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

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

Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RSS
Follow by Email
LinkedIn
Share

Discover more from The Wall Street Examiner

Subscribe now to keep reading and get access to the full archive.

Continue reading