Back
29 Oct 2015
GDP details not bad, supporting FOMC statement - ING
FXStreet (Guatemala) - James Knightley, analyst at ING noted that the US GDP expanded 1.5% QoQ annualised in 3Q15.
Key Quotes:
"This was marginally weaker than the 1.6% consensus, but the details aren’t at all bad. Inventories was a huge drag, subtracting 1.44 percentage points from growth. Investment in non-residential structures was down 4%, but everything else grew and net exports didn’t really take anything away either."
"In terms of the positive contributions, personal consumer spending rose 3.2% after expanding 3.6% in 2Q while equipment investment was strong (+5.3%) and residential investment was very firm at +6.1%. Government consumption was at 1.7%."
"As a result, it offers some support to the Fed’s comments in yesterday’s FOMC statement regarding the strength of the economy. However, we really need to see an improvement in the labour market and higher inflation readings to be confident in the idea of a December Fed rate hike – note that the core PCE deflator showed inflation slowing to 1.3%YoY from 1.9%."
Key Quotes:
"This was marginally weaker than the 1.6% consensus, but the details aren’t at all bad. Inventories was a huge drag, subtracting 1.44 percentage points from growth. Investment in non-residential structures was down 4%, but everything else grew and net exports didn’t really take anything away either."
"In terms of the positive contributions, personal consumer spending rose 3.2% after expanding 3.6% in 2Q while equipment investment was strong (+5.3%) and residential investment was very firm at +6.1%. Government consumption was at 1.7%."
"As a result, it offers some support to the Fed’s comments in yesterday’s FOMC statement regarding the strength of the economy. However, we really need to see an improvement in the labour market and higher inflation readings to be confident in the idea of a December Fed rate hike – note that the core PCE deflator showed inflation slowing to 1.3%YoY from 1.9%."