As the analysts and economists pour over the numbers we’re starting to get the early judgments on the revisions
- BNP sees positive signs from the consumer numbers that will only increase with lower gasoline prices. This and the fixed investment details helped to offset the lower export and government spending
- Citi is not revising their Q4 forecasts and also like the personal consumption details and say the revisions counter the negative contributions from inventories
- ING says that inventories and the defence components will have a drag on Q4 growth, some parts of the release suggest that the economy has more momentum than previously thought
- Capital Economics says Q4 growth will be nearer to 3.0% and on better consumer spending and business investment sees the Fed raising rates sooner than expected
- Pantheon doubt the Q3 pace can be carried forward despite the broad-based surprise but it could substantially raise the starting point for Q4
Stocks are making their feelings known and it’s a muted start and reaction so far.
- S&P +4pts to 2074
- Dow +29pts to 17846
- Nasdaq +19pts to 4773
US 10 year yields 2.29% -1bp
