Q3 GDP, advance estimate preview - Nomura
|Analysts at Nomura offered a preview of the key Q3 GDP, advance estimate.
Key Quotes:
"In the advance estimate of Q3 real GDP, we expect the BEA to report growth of 2.9% q-o-q saar (Consensus: 2.6%). Despite the negative impact from the recent hurricanes, we think the US economy continued to grow above potential in Q3. Incoming data on personal spending suggest steady growth. On the business side, reflecting healthy growth in new domestic orders of core capital goods, we expect steady gains in equipment investment. Inventory investment likely contributed strongly to Q3 growth as businesses build up inventories in the face of better demand."
"Although the recent hurricanes may have disrupted production in affected areas, incoming data suggest resilient growth in inventory investment. Further, exports in recent quarters have been strong. We expect this trend to have continued in Q3, reducing the drag from net exports, despite hurricane-related disruptions to global shipments."
"On the downside, we expect some drag from business investment in structures, likely reflecting the negative impact from the hurricanes, tighter credit standards for commercial real estate loans, and plateauing oil and gas well drilling activity. Residential investment likely remained sluggish in Q3. Residential construction has been soft, constrained by a lack of developable lots and skilled labor. Further, the recent hurricanes severely interrupted housing sales activity in August and September, lowering our expectations on brokers’ commissions."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.