Three quarters of our way into the year, as hard as it is to let go of summer, it is equally hard to ignore falling leaves, drops in temperatures and of course, the kickoff of the pro football season. As the seasons turn and we head into the final quarter of the year, it is exceedingly less likely that the U.S. economy will turn into a giant pumpkin. A stupendous 4.6% reading for Q2 GDP and solid preliminary readings on Q3 GDP reflect a pick up in momentum after five years of false starts and sluggish recovery. Manufacturing, business investment spending, corporate profits, inventory investment and consumer spending are holding up well and expanding. Now that the pace of job growth has been stable for some time, and layoffs at cyclical lows, concerns have shifted to the extremely slow pace of wage and income growth.
Higher wages would in turn support higher levels of consumer spending and, maybe, even an uptick in homeownership. The housing sector recovery remains intact, although its pace and strength has slowed substantially as investors have exited and regular buyers remain wary. As the year winds down and sales of rakes climb, the economic expansion is expected to build on its strengths, stay on track and accelerate further.
Source : CBRE Global Investors