30/10/2017 - US Preliminary GDP Beats Expectations

USD

The US economy expanded at 3% during the three months to the end of September, which was stronger than expected. Analysts had been expecting a sharp slowdown after back-to-back hurricanes battered several states in the quarter. But consumer spending held steady, despite a drop in home building investment

Consumer spending, which accounts for about 70 percent of the economy, added 1.6 percentage points to growth last quarter. That was driven by motor vehicles, as Americans replaced cars damaged by the storms, while services spending slowed to the weakest pace since 2013. 

The Commerce Department cautioned that its figures did not capture all the losses caused by the storms, which caused widespread closures of factories, offices and airports in states such as Florida and Texas.
Construction spending also fell, but exports and business investments in equipment and intellectual property accelerated from the previous quarter.

EUR

Recently deposed Catalonian president Carles Puigdemont called for peaceful “democratic opposition” to the central government’s takeover of the region following its unilateral declaration of independence from Spain. The regional government of Catalonia was dismissed by Spanish Prime Minister Mariano Rajoy on Friday. The Spanish government took over the administration of the autonomous region and called a new election after Catalonia’s parliament declared itself an independent nation on Friday. European countries, the United States and Mexico have rejected the Catalan declaration and expressed support for Spain’s unity. In the wake of the political instability a number of largely peaceful unity protests have taken place across the country.

Key Announcements

12:30 USD: Core personal consumption expenditure Sept; expected to be unchanged at 0.1%