Q3 GDP +4.1%

This morning, the government revised third-quarter GDP growth up to 4.1%. That’s a surprisingly strong number — the second-best growth rate in the last 30 quarters.

This report puts the Fed’s tapering decision in more context. The economy is clearly doing somewhat better. As I’ve said, things like the 2-10 spread, the ISM report and the behavior of cyclical stocks, have all been pointing in the direction of stronger growth.

I should caution investors that this is just one data point (albeit a biggie). The third quarter began nearly six months ago, and ended three months ago. I wouldn’t be surprised to see the 10-year Treasury crack 3% very soon.

Posted by Eddy Elfenbein on December 20th, 2013 at 9:03 am

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