U.S. economic growth likely to have decelerated slightly in Q3

The U.S. advance real GDP growth data for the third quarter is scheduled to release tomorrow. According to a TD Economics research report, the U.S. economy is likely to have grown at a soft annualized pace of 1.4 percent, a deceleration from the 2 percent recorded in the prior quarter.

Most major components of growth are on track to slow from the second to third quarter, with the marked exception of residential investment. An upturn in the housing market is likely to see residential investment rebound 5.6 percent after six consecutive quarters of falls.

“Consumer spending should be a key support to growth (+2.7 percent), while business investment is expected to contract (-3.8 percent) for the second consecutive quarter”, added TD Economics.