Median nowcasts for the July–September quarter point to 3.2% annualized growth, up sharply from Q2's 2.2%, just as September CPI and PPI surprised to the upside.

A set of GDP nowcasts compiled by The Capital Spectator continues to point to an acceleration in US output, with the median estimate tracking a 3.2% annualized pace for the third quarter—a solid improvement over Q2's 2.2% rise. The estimate is unchanged from early October, suggesting relatively high confidence ahead of the BEA's October 29 release.

The stronger growth signal complicates the inflation debate. September consumer, wholesale and import price reports all came in hotter than economists expected, and the 10-year Treasury yield briefly touched 5.3% before retreating later in the week. The Fed meets on October 28, a day before the GDP report.