The final revision for 3Q GDP surprised to the upside this morning as real GDP increased at an annualized rate of 4.1%. This is just the second time that real GDP has grown at a +4% clip in a quarter in the post-2008 recovery.
One of the bright spots of the report was the contribution from intellectual property products. Anyone that is familiar with our firm knows how happy we are that a portion of intangible investments are finally being included in the calculation of GDP (click here for our conference call "Intangibles Go Mainstream" for more information). IP products contributed 22 basis points to real GDP which is the most since 3Q 2010.
Looking forward to the fourth quarter, the most recent ISM manufacturing and non-manufacturing surveys, as well as other leading indicators, are indicating that next quarter is on a similar trajectory as the previous quarter.