RBC Capital Markets took a chainsaw to its fourth quarter growth estimate after today’s PCE report. They now see just 0.2% annualized growth in the quarter compared to a previous 1.0% estimate.
The current consensus is 1.7% with other estimates ranging from 0.5%-2.9%.
Yesterday’s upward revision to Q3 US GDP shifted much of the inventory building to the end of that quarter. It’s something that hurts Q4 but the market had been anticipating it for weeks.
What’s new is that RBC sees weak consumer spending in Q4. They also cite the effects of Hurricane Sandy.
