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21 Dec 2015
US: Business inventories and net exports weighing on final 3Q GDP growth – BBVA
FXStreet (Delhi) – Research Team at BBVA Research, suggests that the final estimate for 3Q15 real GDP growth (Tuesday) is expected to show a slight downward revision from the 2.1% figure released last month.
Key Quotes
“Lagged data releases throughout the past few weeks have shown minor adjustments to a few GDP components for September, including business inventories and net exports. Both of these are also expected to remain weak moving into the fourth quarter on the backs of soft global demand and the strong USD. However, domestic consumption should continue to offset such weakness, driving growth into 2016.”
“Domestic uncertainty is falling now that the Fed’s rate hike and Congress’ budget agreement are behind us, leaving room for upside surprises in the coming year. Overall, we maintain our projections for 2.5% growth in both 2015 and 2016.”
Key Quotes
“Lagged data releases throughout the past few weeks have shown minor adjustments to a few GDP components for September, including business inventories and net exports. Both of these are also expected to remain weak moving into the fourth quarter on the backs of soft global demand and the strong USD. However, domestic consumption should continue to offset such weakness, driving growth into 2016.”
“Domestic uncertainty is falling now that the Fed’s rate hike and Congress’ budget agreement are behind us, leaving room for upside surprises in the coming year. Overall, we maintain our projections for 2.5% growth in both 2015 and 2016.”