The third and final look of 3rd quarter GDP came in today at an annualized 3.5%, stronger than the 3.3% estimated and much improved from the first 2.2% reading. That should bring the year 2016 GDP to right around 2.0%. That’s great; growth is a good thing. The Fed has been wanting to see a 2% GDP to start raising rates and the timing seems to be working out perfectly for them. They must be super smart.
Durable goods orders won’t be helping GDP; the marker was down 4.6% for the month of November. The loss is tied directly to transportation, because when you strip it our, there was a net gain of 0.5%. Again, you need to talk to them smart folks that get to take the last two weeks of the year off to be sure, but the way I see it, it looks like Trump’s demand to make Boeing keep the cost of the next Air Force One under $4 billion is already having an effect.