GDP Growth

The economy is slowly and steadily improving.  Gross Domestic Product (GDP) grew a healthy 3.5% in the 3’d quarter while employment wages and benefits rose by .7% in both the 2nd and 3rd quarters.

Wages and salaries rose by over 5% annually-adjusted in the 3rd quarter, as well.


The best news is that all these increases are not causing inflation to rise.  It’s been steady at 1.5% year over year, well within the Fed’s comfort level.

What does all this mean?

The economy is picking up steam without negatively affecting inflation … sooooo … no impetus for the Fed to raise interest rates.

Good news for us all.

Good Economic News

Here’s some good economic news.  The U.S. economy is performing well by comparison to many western industrialized countries.  'First time weekly claims for unemployment insurance' fell again and are remarkably low.  Existing home sales rose 1.5% and are at their highest level of the year. In addition, the Philadelphia Fed Manufacturing Index hit its highest level since 1993.  So, there is a lot of manufacturing going on, all while inflation remains level. Several positive signs for economic recovery.