Goldman Sachs has boosted its Q3 US GDP tracker to 1.7% from 1.6%. Economist at Goldman write:
The ISM manufacturing index increased by less than expected in August. The composition of the report was mixed, with increases in the new orders and employment components but a decline in the production component. The S&P Global manufacturing PMI was revised down in the August final reading. Nominal construction spending decreased in July, in line with consensus expectations, implying a 0.5% (month-on-month, seasonally adjusted) decline in real terms. The details of the construction spending report were slightly stronger than our previous GDP tracking assumptions. We boosted our Q3 GDP tracking estimate by 0.1pp to +1.7% (quarter-over-quarter annualized) and our Q3 domestic final sales estimate by the same amount to +0.7%.
We’re still a long ways from a real print on Q3 but there will be some meaningful swings in expectations this week with ISM services and non-farm payrolls to come.
h/t @MikeZaccardi
This article was written by Adam Button at investinglive.com.