Analysts Anticipate 3.2% Annualized Growth in US Q3 GDP Ahead of Official Data

The US Bureau of Economic Analysis (BEA) is set to release the first preliminary estimate for Q3 Gross Domestic Product (GDP) growth, with analysts forecasting an annualized rate of 3.2%, a slight decrease from the 3.8% recorded in the previous quarter. While this figure suggests continued healthy economic expansion, the primary focus remains on the weakening labor market and the Federal Reserve's future monetary policy. The GDP Price Index (deflator) is also due, which stood at an encouraging 2.1% in Q2. The Atlanta Fed's GDPNow model estimates Q3 growth at 3.5%, though this is tempered by concerns that a loosening labor market, evidenced by a rise in the Unemployment Rate to 4.6% in November, might temper the final figure. The GDP print is expected to influence the US Dollar Index (DXY); a poor reading could push the DXY toward its December low around 97.87, while a better-than-expected result might offer temporary support to the dollar, which is currently in a bearish trend.

(Source：BeInCrypto)