26 Oct 2015
U.S. Q3 GDP Preview: Growth on a shaky ground – TDE
FXStreet (Delhi) – Research Team at TD Economics, suggest that after rebounding strongly in Q2, US economic growth momentum is again looking shaky as the intense global headwinds push the recovery slightly off track.
Key Quotes
“In Q3, we expect the pace of GDP growth to slow to an unimpressive 1.6% q/q pace, after the robust 3.9% q/q advance in Q2. Notwithstanding the relatively subpar headline performance, the continued buoyancy in personal spending activity (which should boast a very healthy 3.4% q/q gain) will underscore the very favorable domestic economic backdrop.”
“This will be reflected in the impressive 3.0% q/q or better showing in final private domestic demand, suggesting that the positive momentum in domestic economic activity is being sustained. Government spending should also be a net positive for growth.”
“Weaker external trade activity and the drawdown in inventories will be important sources of drag for GDP this quarter. Admittedly, gauging the pace of inventory accumulation is not an exact science and it will be a key wildcard for this report. The recovery is expected to regain its footing during the last quarter of the year as the headwinds to growth abate.”
Key Quotes
“In Q3, we expect the pace of GDP growth to slow to an unimpressive 1.6% q/q pace, after the robust 3.9% q/q advance in Q2. Notwithstanding the relatively subpar headline performance, the continued buoyancy in personal spending activity (which should boast a very healthy 3.4% q/q gain) will underscore the very favorable domestic economic backdrop.”
“This will be reflected in the impressive 3.0% q/q or better showing in final private domestic demand, suggesting that the positive momentum in domestic economic activity is being sustained. Government spending should also be a net positive for growth.”
“Weaker external trade activity and the drawdown in inventories will be important sources of drag for GDP this quarter. Admittedly, gauging the pace of inventory accumulation is not an exact science and it will be a key wildcard for this report. The recovery is expected to regain its footing during the last quarter of the year as the headwinds to growth abate.”