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US Week Ahead: Q3 GDP, FOMC, Durable Goods, UoM Conf
We look for Q3 real GDP growth of 1.9% – up from +1.3% in Q2. Consumer spending, which languished at a 1.5% rate in Q2, accelerated in Q3 to over a 2% rate. Fixed non-residential investment was weak and likely posted a small decline; however, residential investment surged ahead with double-digit gains as housing activity firmed. Inventory accumulation increased significantly in the nonfarm sector in Q3 and could add over 0.5 percentage point to the Q3 advance. A small deterioration in real net exports is expected while government spending continued to contract. The GDP price deflator likely rose at a 2.1% pace – ... (full story)