Mixed Economic Reports
On the other hand, consumer prices fell more than expected as a result of sharply falling gas prices. That in turn means that even the likely weak nominal growth in consumer spending will amount to a very strong real spending growth number. That in turn means that consumer spending might just make it above the zero level.
Together with a build-up in inventories,continued strong investment growth and rapidly growing government spending this means that despite the statistical drag from the rising trade deficit, the U.S. economy will certainly grow during the fourth quarter, although clearly far below the third quarter number. This view is also supported by a number of unexpectedly strong reports today on the maunfacturing sector. While U.S. growth have very shaky foundations, it have not ended yet.