After Wednesday night’s slightly hawkish FOMC tone, markets were eagerly awaiting the next piece of high tier data, which arrived yesterday in the form of GDP. We also had the release of the weekly jobless claims figure from the US and pending home sales. US pending home sales again posted a negative number, whilst jobless claims posted a healthy 260k, slightly better than forecast.
US GDP was released yesterday and showed that the world’s largest economy cooled as US companies reined in inventories last quarter. The economy in the US expanded at a slower pace in the third quarter missing expectations of 1.6% and posting a slightly worse 1.5%, although the previous figure was revised higher to 3.9%. Household purchases, boosted by job and income gains, will continue to underpin the US’s economy even as weaker demand from overseas customers holds back exports and manufacturing.
Economic data today is plentiful but could be fairly lackluster as it is mainly second tier data. It is also month end so do not be surprised to see some erratic price action. German retail sales, Eurozone inflation and unemployment are all due for release. In the US, personal spending and the University of Michigan consumer sentiment are all set for release.