The most important event last week was the passage in the Senate of a tax reform bill. The House has already passed its version and the two bills must now go through reconciliation. We are much closer to getting a major fiscal stimulus package to add to the economic data that continues to reflect steady improvement in current conditions. Third quarter Real GDP was revised up to a 3.3% growth, from the 3.0% contained in the Advance Report. The higher growth was a function of greater inventory accumulation and a lower trade deficit than first estimated. Growth did not accelerate due to strong consumer final demand.

Personal consumption expenditures were actually revised down to a 2.3% rate of growth, from 2.4% first estimated. With seventeen year highs for consumer confidence and strong job growth, consumer spending should lead overall economic growth to even better levels going forward…

ProBank Austin Advisor – December 05, 2017