The Bureau of Economic Analysis released their first estimate of Q4 GDP growth today. The BEA first estimate is 2.1 percent growth for the fourth quarter and 2.3 percent growth for the year. [Data Here] The U.S. economy is now approximately $21.7 trillion.
Commerce Secretary Wilbur Ross appeared on Fox Business with Maria Bartiromo to discuss the ‘big picture’ outlook for the U.S. economy. Strong employment, strong wage growth, strong consumer spending, and now the USMCA passage delivering the backdrop for domestic capital investment. Good interview:
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The headwinds by Boeing and the GM strike had some negative impact. However, 2019 was dominated by Wall Street multinational investors taking the ‘wait-n-see’ position on the China/Asia -vs- USMCA trade dynamic (manufacturing investment) overall.
The USMCA passage gives certainty to North American manufacturing investment. The China ‘phase-one’ agreement allows time for re-positioning, and/or time to extract profits from prior investment. A corporate decision to manufacture in China is now based on an entirely different set of considerations than 24 months ago…. ‘phase-one’ buys time but doesn’t reduce the long-term risk. North America is now the place for investment stability.
