Will US GDP data confirm a pick-up in activity?

US economic growth cooled sharply as the Delta variant of coronavirus reduced consumer spending and supply chain bottlenecks hit businesses, but activity is already showing signs of picking up.

Economists project data from the US commerce department on Thursday will show GDP growth of 3.2 per cent on an annualised basis in the July-September quarter, compared with a 6.7 per cent expansion in the second quarter.

Consumer confidence fell and Americans spent less during the Delta resurgence. They also grew more wary of higher prices on everything from groceries to petrol and home prices, contributing to a pullback in spending. “I have consumer spending pegged at close to zero growth in the third quarter,” said James Knightley, chief international economist at ING.