Nick Nasad
All posts from Nick Nasad
Nick Nasad in Nick Nasad,

US 3Q GDP Headline Print Better Than Expected, But Inventories Lead The Way

The advance US 3Q GDP report - the 1st of 3 - came in stronger than expected at 2.8% compared to forecasts of a 2.0% increase.

Here's a good graphic for looking at the composition of GDP:

(Courtesy of ZeroHedge)

  • The important thing to notice is that around 0.8% of that growth was fueled by inventory accumulation, which is volatile and could be pulling demand from the 4Q and will have a "make-up" period when inventories are then rundown. 
  • Personal consumption was at 1.5%, slightly lower than in the 2Q.