Reuters
Goldman hikes third-quarter GDP growth estimate to 1.9%
Goldman Sachs boosted its third-quarter GDP growth estimate by a full percentage point, to 1.9% from 0.9%, on Wednesday after a series of economic indicators exceeded expectations. The broker in a note cited the “above potential” September increase in private-sector employment, reflected in payroll processor ADP’s National Employment index, and the narrowing trade deficit in August, which was “stronger than our previous expectations,” wrote a team led by Jan Hatzius, Goldman’s chief economist. The ADP report showed private employment grew by 208,000 last month, a 12.4% acceleration from the upwardly-revised August figure, while the Commerce Department’s report on international trade showed the import/export gap shrank in August to its narrowest reading since May 2021.
