The U.S. Commerce Department has released its revised reading on gross domestic product (GDP) for the third quarter of 2014. In a nutshell, this revised report blew the doors off the hinges.
GDP was revised from a prior preliminary report of 3.9% up to a whopping 5.0% for the third quarter. Bloomberg and the Wall Street Journal each were calling for a 4.3% revised headline reading, and this tops the 4.6% growth of the second quarter. In fact, it was the best reading in what looks like 11 years.
One driver was health care spending, which was roughly a half-point of that growth. Services was revised to 2.5% from 1.2%.
GDP may have some incidental factors in the report, but a headline reading of 5.0% will turn heads regardless of any exceptions and incidentals.
Unfortunately, investors may be more focused on a dismal durable goods report for November that was released at the same time. That figure is more recent, and it may signal a starting point in the impact of lower oil prices.