Next week, on Thursday the first estimate of US Q3 GDP growth data will be released. Analysts at Wells Fargo forecast the economy expected at an annualized rate of 2.8%, after two negative quarters. They still see a recession next year.
Key Quotes:
“After two consecutive quarters of negative growth, we forecast the U.S. economy expanded at an annualized rate of 2.8% in the third quarter.”
“We anticipate underlying demand measures remained solid, and we have bumped up our forecast for real personal consumption expenditures (PCE) on the recent retail sales data for September. We now look for real PCE to rise at a 0.8% annualized pace in Q3 (+0.6% previously). Higher consumption suggests modestly more import growth as well, though net exports still look to provide a considerable boost of over three percentage points to the headline GDP figure as import growth still broadly reversed during the quarter.”
“We still anticipate a mild recession to take place next year. But as we detail in our latest monthly report, recent momentum makes the start of recession by the beginning of the year less likely. We now see a downturn happening a bit later, beginning in the second quarter rather than the first.”
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
Editors’ Picks
AUD/USD holds onto RBA gains, ahead of Lowe and key data Premium
AUD/USD rose for the fourth consecutive day on Tuesday, reaching weekly highs above 0.6650. The positive tone around the Aussie prevails following the recent rate hike by the Reserve Bank of Australia. Governor Lowe will speak on Wednesday, and Australian GDP data is also due.
EUR/USD replicates sluggish markets around 1.0700 amid challenges for ECB hawks, Fed blackout Premium
EUR/USD licks its wounds around 1.0700 as bulls and bears jostle during a sluggish week comprising unimpressive data and the Fed blackout. The Euro price pared intraday losses during late Tuesday but remains sidelined as the early Asian session morning restricts the market’s moves.
Gold edges higher as US Dollar, yields dribble on mixed Fed concerns
Gold price seesaws around $1,963 amid the early hours of Wednesday’s Asian session, after a two-day rebound within a short-term trading range. In doing so, the XAU/USD pays little heed to the US Dollar’s slightly positive performance.
Arbitrum community to vote for AIP budget proposal as ARB hints 10% gains
The Arbitrum community has published the draft for the AIP budget proposal, voting to commence on June 9. The proposed budget aligns with the Foundation's strategic needs to represent and service the DAO. Three elements stand out concerning the Foundation's Administrative Budget Wallet.
Readying for hawkish Fed
S&P 500 made two runs over 4,300, yet was rejected in each. Bonds though didn‘t paint universally negative picture – only the sectoral composition of the decline did.