Tags: jim mccaughan | economy | growing | gdp

Jim McCaughan: Economy Growing Faster Than GDP Numbers Suggest

Jim McCaughan: Economy Growing Faster Than GDP Numbers Suggest
(Paulus Rusyanto/Dreamstime)

By    |   Monday, 22 January 2018 09:32 AM

Economic guru Jim McCaughan says the U.S. economy is much more robust than the official data reports would lead investors to  believe.

McCaughan, CEO of Principal Global Investors, a fund manager with $445 billion in assets, thinks the economy is growing faster than GDP numbers suggest, because of the improvement in technology and quality of goods and services.

“I think we’re better off than the numbers say we are and there’s maybe 1% more growth and 1% less inflation than most people think,” he told Business Insider when asked about current economic indicators.

“If you think about it, the economy is really growing faster than the GDP numbers suggest, because the improvement in quality has accelerated. It's always been built into the GDP numbers, but inadequately. I'd also point out on the economy that capital investment is now a lot more productive than it used to be,” he said.

“Tech stocks are the future and I think that's one of the reasons why the equity market is justified at this level and why the economy is changing the way it is,” he said when asked about the future of tech stocks.

The “Trump economy” reportedly may be doing something not seen since 2005 by sustaining economic growth at a 3 percent or better pace for three quarters in a row.

Economists have raised fourth-quarter growth estimates to 3 percent or better after strong December retail sales and robust revisions to prior months.

The question is whether the trend can continue into the first quarter, which is typically weak and is vulnerable to harsh winter weather, CNBC reported.

(Newsmax wire services contributed to this report).

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Jim McCaughan: Economy Growing Faster Than GDP Numbers Suggest
jim mccaughan, economy, growing, gdp
Monday, 22 January 2018 09:32 AM
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