Interesting from Westpac today:
"We've upgraded our above consensus Q4 GDP forecast from 0.8%qtr, 2.8%yr to 1.1%qtr, 3.1%yr. The major upside surprises in the last week have been: private equipment spending, +6.0%, business non-farm inventories, adding 0.7ppts, and public demand, +0.8%. That all paints a stronger than expected finish to the year. Such an outcome would bring the GDP data more into line with the labour market. Employment growth was running above 3% through 2010 and hours worked increased by 0.8%qtr, 3.2%yr in Q4. Having said that, not all indicators have been so positive. The private business surveys were mixed over the second half of 2010 and both business and consumer confidence was choppy at times during 2010."
