UBS Makes A Striking Discovery: Ex-Energy, US GDP Growth Is The Slowest Since 2010

[Norbert]

The 2017 global growth acceleration was largely (70%) a commodity bounce. This applies even to the US which was 20% of the global growth improvement but, as the 1st chart below shows, it was entirely energy investment. Once you strip that out 'underlying' growth is only 1% or so (ex inventories) - the slowest since 2010 - and a significant amount of rotation now needs to take place from energy to non-energy investment just to sustain the current growth pace. The surveys suggest that is possible but the surveys have also consistently overstated growth so far. As Kapteyn adds, due to "skepticism about that rotation is why we are about 20bp below consensus for US growth next year." It also means that contrary to conventional wisdom, the US consumer has not only not turned the corner, but continues to retrench and with the personal savings rate plunging to 10 years lows, there is little hope that personal consumption expenditures will be a significant driver of US growth for the foreseeable future.

Oh but Hillary's Russian ties.

[link:http://www.zerohedge.com/news/2017-11-13/ubs-makes-striking-discovery-ex-energy-us-gdp-growth-slowest-2010|]

[NRaleighLiberal]

1. SAD!

[Wellstone ruled]

2. Yup.

This is the New America,Trump's Third World Order. You can give the 400 wealthiest families their 1.7 trillion in tax breaks,and then we go into one mega recession. Chairman Yellen warned this might happen,but Donnie Dipstick wants his hundreds of millions in Tax Breaks.

[Break time]

3. My guess is

The recession is coming pretty much regardless what they do... The stock market is up but overall economy down it the trenches is flat as a pancake and slow sliding down.

[Wellstone ruled]

4. One thing the Market thrives on is Hope.

UBS is usually a good barometer due their Global Coverage. Now you will not hear or see this from anyone in the Trump Administration.

[pansypoo53219]

5. more GOP faith based ekonomikkks.

all smoke & mirrors. BUT AYN RAND IS GOD!