The Economy is Heating Up

  • Just revised 3rd 2014 GDP rose at 5%, greatest rise since 2003.
  • The 12-month outlooks for growth in full-time employment and wage increases, at 2.9% and 3.4% respectively, still modestly outpace expectations for inflation (a 2.4% increase) indicating continued growth.
  • With labor markets showing good momentum and energy prices down, we should see consumer spending show further growth in 2015.
  • Business investment was also revised up across the board, with bigger gains reported for spending on construction projects, equipment and intellectual property, which includes software and research and development.
  • The Federal Reserve is predicting 2015 GDP growth ranging anywhere from 2.6% to 3.0%.