US GDP to average a little over 2% in 2017 - Westpac

Analysts at Westpac are looking for US growth of 2.2% annualised in the third quarter, down from 3.1% in Q2

Key Quotes

“The September quarter was a tumultuous time for the US economy, owing to the arrival of Hurricanes Irma and Harvey.”

“The largest impact is likely to be seen in household consumption and secondly construction. Consumption growth is expected to be quite modest, while construction's contribution to growth, if any, will be negligible. Recent durables goods data implies equipment spending started the quarter well; so even with the storms, it should provide a solid contribution to growth in the quarter.”

“Overall, we look for growth of 2.2% annualised in the quarter, down from 3.1% in Q2. A bounce back towards 3.0% is then anticipated in Q4 as restocking occurs. The post-hurricane rebuild will aid growth in 2018, albeit likely only at the margin.”