Q3 GDP surprised to the upside but personal consumption grew a meager 1.5 %. Among the weakest quarterly numbers seen in the past recovery. Lately, consumer confidence has also started to surprise on the negative side.
Consumption growth has disappointed during the recovery period as a whole. Personal consumption accounts for roughly 70 % of GDP.
“In terms of revenues, 52% of companies have reported actual sales above estimated sales and 48% have reported actual sales below estimated sales. The percentage of companies beating sales estimates is above the percentage recorded over the last four quarters (48%), but below the average over the previous four years (59%).” (FactSet)