U.S. Economic News
November 28, 2018
U.S. Economic Indicators
The second estimate of Q3 GDP indicates that the U.S. economy expanded at an annualized rate of 3.5%, unchanged from October’s advance reading. The reading reflects upward revisions to nonresidential fixed investment and private inventories, which were offset by downward revisions to personal consumption expenditures and government spending. BEA Report
New home sales fell 8.9% to a seasonally adjusted annual pace of 544,000 in October, and are 12.0% below the October 2017 rate. The median sales price eased to $309,700 and the inventory of new homes surged to 7.4 months at the current sales rate, the highest level since 2011. Census Bureau Report
U.S. News
According to the Wall Street Journal, U.S. retailers are cutting orders, negotiating down prices, and demanding faster turnarounds from Chinese suppliers as the effects of tariffs spread. Chinese manufacturers, also strained by tariffs, are attempting to find new customers outside the U.S. and are offering discounts to ease the drop in orders. WSJ
Sam Fleming of the Financial Times reports that the Federal Reserve has identified a hard Brexit deal and Italian sovereign debt sell-off as risks to the U.S. financial system in its Financial Stability Report. The Fed’s assessment also flagged corporate debt and geopolitical uncertainty as potential triggers of volatility. FT