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.
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.
On the news, the 10-year Treasury note yield rose around 6 basis points.
And the US Treasury 10Y-2Y curve steepened to over 60 basis points.
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