26 Feb 2016
US Q4 GDP preview - Nomura
Analysts at Nomura offered a preview for the key US Q4 GDP, second estimate: tomorrow.
Key Quotes:
"We expect Q4 GDP to be revised down by 0.3pp in its second estimate to 0.4% from 0.7% (Consensus: 0.4%). We expect the downward revision to be primarily due to weaker-than-assumed inventory investment. Domestic demand in the aggregate should be revised down slightly due to weaker-than-expected government spending and residential fixed investment.
We expect final sales growth to be revised down by 0.1pp to 1.0% and forecast that inventory investment will subtract 0.6pp from growth compared with the assumed 0.4pp previously."
Key Quotes:
"We expect Q4 GDP to be revised down by 0.3pp in its second estimate to 0.4% from 0.7% (Consensus: 0.4%). We expect the downward revision to be primarily due to weaker-than-assumed inventory investment. Domestic demand in the aggregate should be revised down slightly due to weaker-than-expected government spending and residential fixed investment.
We expect final sales growth to be revised down by 0.1pp to 1.0% and forecast that inventory investment will subtract 0.6pp from growth compared with the assumed 0.4pp previously."