Transcript for 3rd Quarter GDP Jump Pushes Dow to 18,000
Okay. It's Tuesday December 23 the markets a New York are open and our big number this morning. 5%. Another blow out. Third quarter GDP revised upwards of 5%. A massive jump higher. The biggest rise in GDP since the third quarter of 2003. It's the latest industry have positive data signaling strength in the US economy hello everyone I'm Michelle France and a new York and here with all the details. Rick Newman columnist at Yahoo! finance hi Rick and Michelle. Let's dig through these numbers were powered the move higher was mainly consumer consumer confidence. Consumer spending was a big part of it we also saw government spending going up. That's after some of the spending cuts we saw during the last couple years though spending cuts are basically out of the way at this point. I that'd been a drag on economic growth and now our government spending once again contributing to economic growth. Business has spent money to show. There really is and this is an actual good news good news report not a good news bad news ladle inside of its summer when we've seen a lot of those. During the last couple years so this shows the economy is really picking up steam. All right the latest in a slew of good data for the economy. Is this growth sustainable is it happening in a way that it will be good in the new year. By don't think we're gonna see 5%. GDP growth for the you know foreseeable future but what this tells us is. We had two very strong quarters in the second and third quarter that tells us this this wasn't a fluke so this is this is the economy really coming back in earnest. It spending to cool down a little bit in the for the quarter that we're in now. But what this you know this if this is a really good momentum going into 2015. Economists have been saying. You know we know the economy's not growing as fast as we would like now getting closer to 2.5 or 3% going in a twenty picking 3% economic growth is pretty good. We'd like to see maybe 4% but. At 3% we are gonna get more jobs we probably won't get wages starting to go up that's been a real missing link in the so called recovery so far. I'm but we are looking pretty good for 2015 at this point. All right Rick it looks like Wall Street may be cheering in this report as well along with other things take a look in the moments that the Dow opened its it topping. 181000. Right now are investors getting more bullish filed today. That's a great question they get volition and they re think their bullishness I think is the best pay to put it. Remember this is dated it's going back a couple of months so markets don't usually move a lot on all data like this it's basically confirming what we thought we knew. Our maybe gate may be giving us a little bit more optimism. The other big thing going on of course is the big fall in oil prices and gasoline Citigroup this week said. That's gonna put at about 11150. Dollars. Back in the typical family's budget for the next year if prices stay that low so. I'm these are all contributing to optimism that we are seeing more volatility in the markets more more ups and downs in the ups and downs particularly downs. Might be a little more exaggerated than they have been in the past has pry going to be the case going forward but. Today we're feeling pretty good. Today feeling pretty good in need of of course written a lot about how the middle class has been left behind. As its economy improves and inches forward are there any signs that the middle class can start to gain some ground into the coming year. We're seeing signs of signs I think is what's going on. So the thing that has that the thing that the middle class really needs is pay to go up I mean they need to earn more money. When you look at state the data show talking about median household in com. That's just that's what the typical family earns whether it's one or two learners. I mean it's the typical family is still in a hole if you compare to 2007 which was right before the recession began. I'm so what we need to get out of that hole first we need to see jobs coming back we have seen had 2014 next we need to see incomes going up. We have not seen much of that we're seeing indicators that might happen soon and take a lot of families would say it can't happen soon enough and it's five years overdue. But it is a week does seem like we're getting close at that point such when he. Fifteen might be the year that the middle class actually starts dipped feel this recovery and it starts to trickled out from the people who. Benefited mostly at this point. All right a lot to Watson these final days of 2014. And into the new year Rick Newman from Yahoo! finance thanks for joining us. And you of course can keep up with the latest headlines right here on abcnews.com. You've been watching the big number I'm Michelle Franzen in New York.
This transcript has been automatically generated and may not be 100% accurate.