The first look at American year-on-year GDP hits at 8:30 a.m. EDT. The Street is looking for 1.27 percent growth compared to a prior reading of 2.2 percent. Today’s number is particularly important as it is being released the day the FOMC will release its policy statement and, sadly, the growth expectations are not anything spectacular.
Economists are expecting very weak growth, however no one is looking for a contraction, according to Bloomberg data.
Related Link: With No Chance Of A Rate Hike, Investors To Focus On Fed's Economic Analysis
Putting the most pressure on the report will be the impact of the strong dollar on American exports. The stronger dollar has made American more expensive for foreigners.
The weak report will most likely continue the “bad news is good news” story as markets will view that as an excuse for the Fed to maintain its low rate policy for longer than expected.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
