The pick-up in GDP growth to 2.8% annualised in the third quarter, from 2.5% in the second, suggests that as the fiscal drag fades, the recovery is strengthening. On the whole, the latest monthly data also point to an acceleration. Manufacturing output growth is still weak, but underlying retail sales growth has strengthened and employment growth is picking up. Nevertheless, the evidence is hardly conclusive. It is questionable whether it will be sufficient to persuade the Fed to taper its asset purchases next month. November's labour market data could tip the balance one way or the other.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services