Consumer spending has been relatively robust—rising at more than a 3 percent annual rate in the three months ending in November—but business fixed investment has been sluggish— increasing only 1-1/2 percent in the third quarter—and has changed little, on net, since the middle of 2014.
However, measures of both business and consumer sentiment have moved up noticeably recently, potentially signaling a stronger pace of investment and consumer spending in the months ahead. Meanwhile, changes in financial conditions have been somewhat offsetting since early November, with equity prices rising 7 percent, while 10-year Treasury yields are up 50 basis points, and the dollar is up 4 percent.