Weak data today takes a big bite out of NY Fed's 3Q GDP Nowcast estimate. The weakness was mainly coming from Hurricane impacted production data. The utility, mining and manufacturing components were all lower. The problem is that if the Hurricane weakness is temporary, then you would expect 4Q GDP expectations to increase on the snap back. Unfortunately, this is not the case.
As you can see, the 4Q estimate dropped precipitously as well.
Michael Grove, CFA