US: First cut of Q3 GDP to come in at 2.7% - RBC CM

Elsa Lignos, Senior Currency Strategist at RBC Capital Markets, expects the first cut of Q3 US GDP to come in at 2.7% (cons 2.5%), led by real consumer spending growth of just below 3% as well.

Key Quotes

“The main uncertainty is inventories. They witnessed another negative quarter in Q2 and our economists look for them to add a sizeable 0.5ppts to headline GDP in Q3. That would mark an end to the inventory drawdown cycle seen in the US over the last five quarters, which would mean stronger growth going forward.”