The American economy is on track to deliver its strongest sustained growth in thirteen years.
The latest readings of gross domestic product see the economy growing at well above three percent in the final quarter of 2017. The GDPNOW predictor run by the Atlanta Fed forecasts 3.3 percent GDP growth. The New York Fed’s Nowcast forecasts 3.9 percent growth.
Despite the wide gap between the two readings of the economy, both agree that we appear to be growing at a rate above 3 percent. If that happens, it will be the third consecutive quarter of better than three percent growth. That’s something that has not happened since 2005.
Mainstream journalists and economists are starting to take notice. CNBC’s Patti Domm reports:
Economists in CNBC/Moody’s Analytics Survey upped their median fourth-quarter GDP forecast Friday by a median 0.4 to 3 percent. NatWest Markets raised fourth-quarter GDP to 3.5 percent from 2.7 percent, based on a stronger view of the consumer, and the Atlanta Fed GDPNow shows fourth-quarter growth now at a pace of 3.3 percent, from 2.8 percent earlier in the week.
When the White House said it expected 3 percent growth, economists were skeptical and many growth forecasts held to growth in the 2 percent range.
The first official reading of fourth quarter GDP will be revealed on January 26. Growth was 3.1 percent in the second quarter of 2017 and 3.2 percent in the third quarter.