US economy growing at quickest pace for 11 years

[Foggy_Bottom]

with the hump of the growth coming from comsuming spending, which could be coupled with the booming stock market. I don't see any sustainableness in comming years. this might be a peak quarterly number.

Define " I don't see any sustainableness in comming years" please. And do qualify it since you've now have predicted, what?

Btw, consumer spending has always been the largest part of our GDP. While I do agree we can't bank on it always, we need to get new sources of demand, both domestic and foreign along with more investment, more government spending or more exports. To that the article said " Growth in business investment was raised to a rate of 8.9% from an earlier estimate of 7.1%. There was a stronger pace of spending than previously thought on equipment, intellectual property products and non-residential structures"

Finally, it is predicted that we settle at 3% of GDP for 2015, which is pretty good for a near 18 trillion dollar economy.

 

[Nexus]

Define " I don't see any sustainableness in comming years" please. And do qualify it since you've now have predicted, what?

Btw, consumer spending has always been the largest part of our GDP. While I do agree we can't bank on it always, we need to get new sources of demand, both domestic and foreign along with more investment, more government spending or more exports. To that the article said " Growth in business investment was raised to a rate of 8.9% from an earlier estimate of 7.1%. There was a stronger pace of spending than previously thought on equipment, intellectual property products and non-residential structures"

Finally, it is predicted that we settle at 3% of GDP for 2015, which is pretty good for a near 18 trillion dollar economy.

18 trillion dollars economy !!!
Congrats USA

 

[American Pakistani]

Good to see the country growing. Hope it grows at 5% in 2015.

 

[asquare]

While this is great news, it's a mixed blessing for developed countries. If US growth continues like this, QE will have be unwound sooner rather than later. Which is going to hurt financial markets everywhere. The positives so far have been the noises from the Fed which seem to indicate they're taking other countries concerns into account.

The interesting thing will be, if the growth continues does the Fed go back to a purely inflation mandate?

 

[Foggy_Bottom]

While this is great news, it's a mixed blessing for developed countries. If US growth continues like this, QE will have be unwound sooner rather than later. Which is going to hurt financial markets everywhere. The positives so far have been the noises from the Fed which seem to indicate they're taking other countries concerns into account.

The interesting thing will be, if the growth continues does the Fed go back to a purely inflation mandate?

If by the above you mean, will we increase our interest rates in 2015? Projections and general census puts it at around September 2015.

 

[kawaraj]

Define " I don't see any sustainableness in comming years" please. And do qualify it since you've now have predicted, what?

Btw, consumer spending has always been the largest part of our GDP. While I do agree we can't bank on it always, we need to get new sources of demand, both domestic and foreign along with more investment, more government spending or more exports. To that the article said " Growth in business investment was raised to a rate of 8.9% from an earlier estimate of 7.1%. There was a stronger pace of spending than previously thought on equipment, intellectual property products and non-residential structures"

Finally, it is predicted that we settle at 3% of GDP for 2015, which is pretty good for a near 18 trillion dollar economy.

I acturally agree capital investment is improving.

But consumption as I SAID may be acompanied with the booming equity market which is not expected to be based on a "sustainable" upward status coming forward in 2015. I also doubt that a big chunk of Obamacare are written in this quarterly figure.

 

[A.M.]

Q4 numbers will be even better due to the decreasing oil prices.

Every family has just a little more to spend this holiday season.

 

[Foggy_Bottom]

I acturally agree capital investment is improving.

But consumption as I SAID may be acompanied with the booming equity market which is not expected to be based on a "sustainable" upward status coming forward in 2015. I also doubt that a big chunk of Obamacare are written in this quarterly figure.

Obamacare has reduced national healthcare spending, which is big part of our overall spending. In fact one the 3 legs that contribute most towards our spending. In my opinion- Consumer spending has to do more with per capita incomes and consumer confidence, over equity market gains.

 

[kawaraj]

Obamacare has reduced national healthcare spending, which is big part of our overall spending. In fact one the 3 legs that attribute most towards our spending. In my opinion- Consumer spending has to do more with per capita incomes and consumer confidence, over equity market gains.

The latter two are actually connected. And the growth are more with a marginable per capita expectation, which has more weight on the bolded part of your comment.

Well per capita income per se is hardly to digest we are still waiting for the employment/job figures on adjusted bases. Again I say there's no room for an over optimistic cheers.

 

[Viper0011.]

Obamacare has reduced national healthcare spending, which is big part of our overall spending. In fact one the 3 legs that contribute most towards our spending. In my opinion- Consumer spending has to do more with per capita incomes and consumer confidence, over equity market gains.

I know there are many critics of Obamacare, but the fact is that this new law has started to show a lot of activity in terms of new business ventures, new partnerships being formed and companies already in business, are spending $$$ to optimize their Healthcare products and services mix.
All of these will have significant benefits to the economy in terms of new job creation, new businesses or existing business expansions, etc. So there is another economic boom on its way in my opinion.

While this is great news, it's a mixed blessing for developed countries. If US growth continues like this, QE will have be unwound sooner rather than later. Which is going to hurt financial markets everywhere. The positives so far have been the noises from the Fed which seem to indicate they're taking other countries concerns into account.

The interesting thing will be, if the growth continues does the Fed go back to a purely inflation mandate?

1) The US economy is truly seen as a part of the global economic system, in terms of cause, effects and changes that happen across the globe due to volatility. So an governing body, specially the Feds, make sure that there won't be a global ripple effect if you will, to any changes.

2) The growth in the US market pushes other markets to follow suit so its a positive impact across the globe.

3) Yes, if I remember reading reports on Inflation a few months ago, there is estimated 3% inflation being accounted for, over the next few years. Just the result of the market cycle, nothing else. The interest rates, business, commercial and residential borrowing will jump up but at higher interest rates, so inflation will take place. However, fuel, as one of the most critical commodity in building / distribution of products is becoming cheaper by the day. That could have negative impact on inflation so the percentage could reduce, as farm / factory to market costs may be cheaper due to cheaper fuel.

 

[Gant]

with the hump of the growth coming from comsuming spending, which could be coupled with the booming stock market. I don't see any sustainableness in comming years. this might be a peak quarterly number.

Exactly. It's all driven by consumption spending. American economy is just one big balloon.

 

[senheiser]

gj, how many children you had to drone for this?