US Q3 GDP likely to rise

US Gross Domestic Product rose at an annual rate of 1.5% in Q3 of 2015, as per the "advance" estimate released by the Bureau of Economic Analysis.  In the second quarter, real GDP increased 3.9%.

"Data released since the Bureau of Economic Analysis' advance report on Q3 real GDP suggest that growth probably clocked in at 2.2% annualized during the summer quarter growth, a marked improvement from the previously posted 1.5% pace", says Societe Generale in a research note. 

The increase in Q3 real GDP primarily showed optimistic contributions from PCE, state and local government spending, non-residential fixed investment, exports, and residential fixed investment that were partly offset by negative contributions from private inventory investment. Imports increased, which are a subtraction in the calculation of GDP. 

"Reflecting anticipated modest upward revisions to consumer spending, business equipment investment, home-building and public spending, the growth of real final sales of domestic product and those to domestic purchasers are each expected to be marked one tick higher to 3.1% and 3.0%, respectively", estimates Societe Generale.