The US Bureau of Economic Analysis will release its first estimate of the fourth-quarter Gross Domestic Product (GDP) on Thursday, January 26 at 13:30 GMT as we get closer to the release time, here are forecasts from economists and researchers of ten major banks regarding the upcoming growth data. 

Economists expect the United States to report an annualized growth rate of 2.8% in the last quarter of 2022, slower than the 3.2% clip recorded in the three months ending in September. 

Danske Bank

“We look 2.8% QoQ AR in the Q4 22 GDP figures.”

ING

“The fourth quarter GDP report is expected to show that the economy expanded at a rate in excess of 2% annualised. Consumer spending should be an important driver given the strong performance in October, but aside from that, the growth will largely be focused on net trade and inventory building. This is not ‘good’ growth. Imports are falling because of the deteriorating domestic growth story while inventories are increasing, partly because of improved supply chains, but also because demand is not as strong as many businesses expected. The GDP growth figures over the next few quarters will be much weaker.”

TDS

“We look for GDP growth to have stayed strong in Q4, posting another above-trend gain (3.4%). Growth was likely supported by firm showings from the consumer and inventories.”

RBC Economics

“Q4 US GDP growth likely slowed in Q3 (we expect a 2.0% annualized increase) due to a wider net trade deficit and weak residential investment offsetting stronger consumer spending growth.”

SocGen

“Real GDP is likely to come to 2.6%. Many economists predict even faster growth. We expect real consumption of 2.6%, which serves as the base of our economic-wide prediction. Business investment grew faster, but a widening deficit should exert a drag. If we are correct, real GDP was 0.8% 4Q/4Q, which is faster than the FOMC projected just last December (+0.5% projected as part of the summary of economic projections) and much faster than the 0.2% growth projected by the FOMC last September.” 

NBF

“Growth likely lost some momentum in the quarter, hampered by sinking residential investment and a sharp decline in real exports. Household spending, on the other hand, should have remained quite strong, lifting the headline growth figure. Positive contributions are also expected from non-residential investment, government spending and inventories. Our call is for a 2.0% annualized expansion.”

Deutsche Bank

“We'll see how growth was faring going into this year with Q4 US GDP on Thursday. Our economists expect +3.2% annualised (consensus +2.7%). Interestingly they expect +1.8% for Q1 with H2 being where the US recession hits. Consensus on Bloomberg is around 0% for Q1 so that's a potential battleground once actual hard data comes through.”

Citibank

“We expect a 2.5% annualized increase in real GDP by expenditure in Q4, another quarter of above-potential GDP growth despite much higher interest rates weighing on sectors like housing.”

CIBC

“Although momentum tailed off over the quarter, our forecast for an impressive 2.9% annualized advance in Q4 GDP is driven by a strong showing from consumers, reflecting expected increases in both goods and services consumption. We’re in line with the consensus forecast and market reaction should therefore be limited.”

Wells Fargo

“We estimate that real GDP rose 2.8% on a quarterly annualized basis during that period. While a mild recession beginning in Q3-2023 remains our base case forecast, economic growth appears to have ended 2022 on a positive note.”

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD treads water just above 1.0400 post-US data

EUR/USD treads water just above 1.0400 post-US data

Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.

EUR/USD News
GBP/USD remains depressed near 1.2520 on stronger Dollar

GBP/USD remains depressed near 1.2520 on stronger Dollar

Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.

GBP/USD News
Gold keeps the bid bias unchanged near $2,700

Gold keeps the bid bias unchanged near $2,700

Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.

Gold News
Geopolitics back on the radar

Geopolitics back on the radar

Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.

Read more
Eurozone PMI sounds the alarm about growth once more

Eurozone PMI sounds the alarm about growth once more

The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures