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MajorAgendaThu, Oct 29 ET 8:30 AM pre-market1 min read
Gross domestic product, or GDP, measures the goods and services produced in the United States; real growth removes the effect of price changes. The reported third-quarter growth rate is estimated at 3.1% quarter on quarter, versus a previous 2.2%, pointing to faster growth. Recent retail sales were boosted by gasoline prices rather than necessarily more purchases, making the contributions from real household spending and business investment particularly important.[1]
Expected 3.1% Last release 2.2%
If it comes in above expectations If growth exceeds 3.1%, overall real output would have grown faster than expected. If household and business demand leads the increase, companies would have a stronger basis for expansion and hiring, with less urgency for rate cuts.[1]
If it comes in below expectations If growth is below 3.1%, overall real output growth would be weaker than expected. If consumption and investment are also weak, businesses may expand more cautiously and pressure for lower borrowing costs would increase.[1]
Strong growth driven by customer demand could support revenue expectations for retailers, transport companies and industrial stocks, while reducing support for stocks counting on lower rates. Weak growth could offer rate relief but also weaken sales expectations. Check consumption and investment before inventories and trade: inventory accumulation or falling imports can lift GDP without stronger customer orders.[1]