Tuesday preview: Third quarter US GDP revised lower, analysts forecast
The final estimate of third quarter US gross domestic product on Tuesday is expected to be revised lower by the Commerce Department.
Analysts predict the third and final estimate of real GDP was lowered to an annualised 1.9% in the third quarter from the second estimate of 2.1%.
GDP grew 3.9% in the second quarter. The Commerce Department said the slowdown in the third quarter reflected a downturn in private inventory investment and drop in exports, in non-residential and residential fixed investment, and in state and local government spending.
It was offset by an increase in personal consumption expenditures and imports.
The personal consumption expenditure price index increased 1.3% year-on-year in the third quarter, unchanged from the previous month, according to analysts’ forecasts. The PCE index is Federal Reserve’s preferred measure of inflation. The US central bank is targeting inflation of about 2%.
US existing home sales figures are also due. Economists have pencilled in a 0.4% drop in November from a month earlier, compared to a 3.4% fall in October.
In the UK, the GfK’s index on consumer confidence is projected to show a reading of 1 in December, unchanged from November.
Tuesday 22 December
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Existing Home Sales (US) (15:00)
GDP (Final) (US) (13:30)
GFK Consumer Confidence (GER) (07:00)
House Price Index (US) (15:00)
SPECIAL EX-DIVIDEND PAYMENT DATE
Canadian General Investments Ltd.
EGMS
Air China Ltd., Datang International Power Generation Co Ltd., Zhejiang Expressway Co 'H' Shares
AGMS
GoldStone Resources Ltd, Upland Resources Limited (DI)
UK ECONOMIC ANNOUNCEMENTS
Consumer Confidence (09:30)
GFK Consumer Confidence (00:05)
Public Sector Finances (09:30)
FINAL DIVIDEND PAYMENT DATE
Northern Venture Trust, St Ives