While the equity market is experiencing several crosswinds creating volatility, the economic fundamentals continue to reflect an accelerating rate of growth. Last week, the FOMC included a significant upward revision to fourth quarter Real GDP growth. Usually this last revision is modest but in this case it was revised from 2.5% to 2.9%. This makes Y/Y growth in the economy 2.7%, well above the 1.6% recorded for 2016. The upward revision was primarily a function of stronger consumption with both personal consumption expenditures revised up to 4% from 3.8% and CAPEX revised up to 6.5%.

While personal spending and retail sales appear to have slowed in the first quarter, CAPEX is still accelerating. The first quarter growth report is expected to be below the fourth quarter, due in part, to outdated seasonal adjustment factors…

ProBank Austin Advisor – April 2, 2018