The number: This time the economists nailed it, though of course there will be plenty of revisions.
The markets aren’t moving much on this news.
The full announcement is here.
One good sign: personal consumption jumped 2.6% compared to growth of 2.2% in the second quarter.
The price index was up 0.8% in the quarter versus 0.1% last quarter.
So, bottom line, no huge surprises. As such, the market isn’t moving much.
Background: On the headline, analysts are looking for Q3 GDP growth of 2% (some surveys have the consensus at 2.1%).
That’s up from the 1.7% that we got on the last Q2 GDP reading.
A sign that GDP will probably be decent on the headline came from September durable goods, which grew at a 3.3% pace, helped very much by the transportation industry.
This is the last big econ number before next week’s FOMC meeting, and though everyone figures QE is a done deal no matter what, there’s a growing sense that it’s in flux, and that maybe even, perhaps, the Fed is behind the curve when it comes to the recovery. This number will definitely be taken into account at next week’s meeting.