US GDP in 3Q17
According to the US Bureau of Economic Analysis, the US GDP saw an annualized growth rate of 3.3% in 3Q17, which was above the preliminary market (QQQ) (IWM) expectation of 3%. In 2Q17, the US (SPX-INDEX) economy grew at an annualized rate of 3.1%, strengthening investor confidence in the US economy.
Government spending, non-residential fixed investments, exports, and private inventory investments all supported US GDP growth in 3Q17. Whereas US economic growth (QQQ) (SPY) has improved investors’ short-term economic outlook, their long-term economic outlook depends on various upcoming reforms and fiscal stimulus.
The market has been rallying since November 2016, mainly driven by improvement in fundamental factors and expectations of huge reforms. Higher-than-expected economic growth has strengthened the market (COMP-INDEX) rally, bringing it to new highs each day. In the next part of this series, we’ll analyze US consumer confidence in November 2017.