Analysts at Westpac offer their insights into a spade of key US economic data released on Wednesday.
Key Quotes:
“The second estimate of US Q3 GDP was 2.1% annualized, nudged up from 1.9%, with solid personal consumption but a lift in inventories which could detract from Q4 GDP. Oct durable goods orders rose a solid +0.6%m/m (vs est. -0.9%), the important ex-transport orders measure also rising +0.6%m/m (vs est. +0.1%m/m). Capital goods orders were also stronger than estimated (non-defence/ex-air rising 0.8%m/m, est. -0.2%m/m).
Chicago PMI rose in line with estimates in Nov but remains weak at 46.3 (est. 47.0, prior 43.2). The employment component was weak, though the decline in new orders was more subdued.
US Oct personal income was disappointing at flat m/m (est. +0.3%m/m) and with spending at +0.3% (as est.) the savings ratio slipped to 7.8% from 8.1%. Core PCE inflation was also disappointing at +1.6%y/y (est. +1.7%y/y).
Oct pending home sales undershot estimates and fell 1.7%m/m (est. +0.2%m/m), though NAR continued to find positives in the release, suggesting that a continuation in low housing inventory had impacted the data despite a favorable economic landscape.”
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