Consumer spending, corporate earnings, and the overall economy remain robust.
Investors will examine one of the last snapshots of the economy’s health before election day—and chances are, they’ll like what they see.
The reason: The Federal Reserve Bank of Atlanta’s GDPNow model projects third-quarter GDP growth at 3.4%, reflecting stronger-than-expected economic activity. Driven by a surge in September’s retail sales, GDPNow, a real-time forecasting tool that adjusts with incoming economic data, recently revised its estimate up from 3.2%.
Gross Domestic Product (GDP) Growth Trends
Source: Federal Reserve Bank of Atlanta, data as of October 21, 2024.
Additionally, the Atlanta Fed raised its estimate for consumer spending growth during the quarter from 3.3% to 3.6%, further highlighting the continued strength of consumers’ financial health and spending power.
Combined with the strong start to the third-quarter earnings season thus far—banks’ aggregate earnings growth has been roughly 10% better than anticipated—we believe there may be a strong foundation for equities to continue expanding as 2024 approaches the finish line.
Information obtained from third-party sources is believed to be reliable but has not been vetted by the firm or its personnel.
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