US Q3 GDP Review: Growth accelerated to its fastest pace in 2 years - NAB

The research team at NAB released its latest report on the US Q3 GDP review, noting that US GDP growth accelerated in the September quarter to its fastest pace in two years.

Key Quotes:

“Growth accelerated in the September quarter to its fastest pace in two years. However, the details were not as positive. “

“Overall, the September quarter GDP outcome suggests that the US economy remains solid, with GDP growing at a moderate pace.”

“US GDP growth accelerated in the September quarter to 0.7% qoq (or 2.9% on an annualised basis).”

“The acceleration in GDP growth, even if supported by some likely temporary elements, is welcome after three quarters of sub-par GDP growth.”

“The previous sub-par growth in part reflected a long-running inventory correction which now appears to have come to an end.”

“A key support to the economy in recent times has been consumption, consistent with rapid employment growth and the boost to household budgets from gasoline price falls and US dollar appreciation.”

“With the latter two of these influences fading or even reversing, we have been expecting consumption growth to moderate, and the Q3 outcome was consistent with this view.”