US: Q3 GDP likely to increase by 3.4% - Nomura

Analysts at Nomura suggest that the advance Q3 GDP report of US will highlight data releases this week and they expect a 3.4% qo-q saar increase in real GDP, consistent with an economy benefiting from substantial fiscal stimulus.

Key Quotes

“Note that the September advance goods trade balance and durable goods reports released the day before the GDP report may affect our final forecast.”

“Incoming data last week, including September’s retail sales and industrial production, remain consistent with steady momentum heading into Q4 but with continued weakness in the residential sector.”