US DATA: Q3 real GDP +2.0% and real final sales +2.1%, slightly better
than expected but still showing modest trend-like gain. Commerce assumed
higher inventories and a wider trade gap for missing Sept data. PCE gain
reflected auto and rec vehicle buying, clothing gain. Surprise was jump
in govt spending (fed’l +9.6% on back of defense spending perhaps
related to FY-end and S&L -0.1% in its best since Q3:09 and vs -1.0% in
Q2 as budgets stabilized). GDP prices +2.8% and core PCE px +1.3%.
GDP Components: Q3 Q4:11 Q1:12 Q2 Q3 prelim
Real growth +1.3% +4.1% +2.0% +1.3% +2.0%
Real final sales +2.3 +1.5 +2.4 +1.7 +2.1
PCE +1.7 +2.0 +2.4 +1.5 +2.0
Nonres fixed invest +19.0 +9.5 +7.5 +3.6 -1.3
Res fixed invest +1.4 +12.1 +20.5 +8.5 +14.4
Net Exprt Contrib add 0.02 cut 0.64 add 0.06 add 0.23 cut 0.18
Inventory Contrib cut 1.07 add 2.53 cut 0.39 cut 0.46 cut 0.12