US: Economy growing solidly - NAB

Tony Kelly, Senior Economist at NAB suggests that initial data for the September quarter point to solid US growth.

Key Quotes

“Surveys of business conditions and consumer confidence support this outlook.”

“Hurricane Harvey, despite the devastation it has caused, is unlikely to have a major effect on GDP but will affect some partial indicators; however, another major hurricane (Irma) appears set to make landfall in the US.”

“The Fed is set to start balance sheet ‘normalisation’ in September, but inflation needs to strengthen soon for another rate hike to occur this year.”