The all-important second-quarter GDP is set to be released by the U.S. Department of Commerce at 8:30 a.m. ET, with consensus showing 2.9 percent growth in real GDP, according to Bloomberg News. Consensus estimates range from 1.9 percent to 3.5 percent. This follows last quarter's very weak reading of -0.2 percent, which many economists look to be revised upward.
In addition to the headline GDP number, The Bureau of Economic Analysis (BEA) will be revising the prior three years of data to rectify a chronic pattern of weak first quarter GDP numbers. Joe LaVorgna, chief economist at Deutsche Bank, looks for a first quarter revision to 1.8 percent. Chief economist Michelle Girard of RBS also looks for the negative first quarter GDP print to be revised into positive territory.
Many investors look at GDP as the best overall gauge of the combined goods and services produced. Warren Buffett compares overall GDP to overall stock market cap to derive a valuation indicator, saying he believes "it is probably the best single measure of where valuations stand at any given moment."
In addition to the headline GDP number, the GDP price index, which measures inflation, will be released. Expectations are for a gain of 1.5 percent.
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