US GDP: Markets already pricing a gloomy report – CIBC

The steep drop in economic activity in March as a result of widespread business closures and social distancing should more than erase gains from earlier in the first quarter, economists at CIBC Capital Markets inform.

Key quotes

“GDP is set to contract at a 5.8% annualized pace. That would capture the acute weakness expected in consumer spending.”

“Markets are already expecting a dismal report so our slightly below consensus forecast shouldn’t be enough to move markets.”