US: Economy on a strong footing – NBF

A sixth consecutive quarter of above-2% real GDP growth is in the cards for the U.S. economy, according to Krishen Rangasamy, Research Analyst at National Bank Financial.

Key Quotes

“Consumption spending remained strong in Q3 buoyed by a healthy labour market and personal income tax cuts. Investment was also supportive of growth during the quarter thanks in part to elevated business confidence.”

“All in all, the data does nothing to change our view that 2018 real GDP growth will be close to 3% and well above potential. Encouraged by a buoyant U.S. economy and rising inflation pressures, the Federal Reserve will continue to normalize policy in 2019, albeit at a slower pace than this year.”