Businesses pull back while the consumer marches ahead
Third quarter GDP growth surprised the markets to the upside by advancing 2.0% qoq saar. That was better than market expectations of a 1.8% increase and up 0.7pp from the 1.3% qoq saar growth rate recorded in the prior quarter. Overall, this is a positive report, but the details raise concern that the business/consumer dichotomy continues. On the one hand businesses pulled back investment ahead of the fiscal cliff while consumers continued to spend.
Read the full report here.