Photo: U.S. Army via Flickr
Deutsche Bank see tomorrow’s GDP release having strong upward revisions, but that’s only the beginning of the good news for the U.S. economy.Corporate profits, a key leading indicator of future employment, are also set to zoom.
From Deutsche Bank:
More importantly, we will get the first snapshot of Q3 economy-wide corporate profits. We are projecting a robust 18% annualized quarterly increase. If our forecast is accurate, the cumulative increase in profits since they bottomed in Q4 2008 will total roughly 35%. This is an incredibly sturdy rate that will almost certainly point to a stronger pace of hiring in the quarters ahead, because every strong profits recovery in the past has given way to a noticeable pickup in hiring.
As a result of corporate profits and other positive data, Deutsche Bank say, “jobless claims could be on the cusp of a breakout to the downside.”