Comments on Q3 GDP and Investment

By Bill Mcbride

Representative report on today’s GDP revision.

The inventory gains raise the concern of reversal in Q4 for most analysts.

Again, 2014 optimism is based on the reduction of fiscal drag.

My concern remains that we proactively removed fiscal support that isn’t coming back and that the sub 3% federal deficit isn’t enough given current financial conditions.

And note the declining PCE growth: