RBS Says US Q3 GDP Won’t Be Strong But Not Stellar

The U.S. economy is strong even though third-quarter GDP will not be stellar, RBS’ Michelle Girard said Monday.

Economists expect third-quarter GDP — due Thursday — to come in at 1.4 percent, well below the final second-quarter reading of 3.9 percent, according to a Dow Jones estimate.

“I think the U.S. economy is stronger than the credit it’s getting,” Girard, RBS’ chief U.S. economist, told CNBC’s “Squawk Box.” “The private domestic economy — if you look at consumer and business spending and housing — has been growing better than 3 percent.”

“Thursday’s GDP number is not going to look good on the surface, but if you look at consumer spending and housing and business spending, the numbers are going to be closer to 4 percent.”
Last week, the Commerce Department said U.S. housing starts rose 6.5 percent month over month.

Existing home sales rose more than expected in September to the second-highest monthly sales pace since February 2007.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza