Solid economic data released last week makes the outlook for next year better.

The U.S. economy continues to accelerate as we end the year. The wealth of data released last week confirmed the improving trends that began two months ago. Personal spending and incomes increased in November at a rate better than what was experienced in late summer. The housing sector continues to recover from the weakness reported in the prior year. Consumer confidence rose and the JOLTS Index recovered in October. The impact of the GM strike is behind us and the tight labor market is driving wage rates higher. There is even some basis for expecting business fixed investment to turn around and begin to contribute to growth instead of being a drag.