Durability of economic recovery still in doubt

After a slow start to the year, partly due to bad weather, the recent run of good data since then indicate that the economy continued to grow well above its potential annualised growth rate of 2.0% in the third quarter. We now expect the economy to grow by 2.4% annualised. But since this growth partly reflects the bounce-back from weather-related interruptions to production early this year, we doubt that this above-potential pace will be sustained in the fourth quarter.