U.S. Review
Congressional Deal Comes Down to the Wire…Again
* Congress struck a deal on Wednesday that will fund the government through mid-January and allow the Treasury to continue to borrow though early February. The short horizon of the deal will do little to allay any policy uncertainty that may be weighing on household and business spending.
* Data released this week suggested that economic activity has weathered the federal government’s shutdown and run-up to the debt ceiling limit better than in the 2011 episode. The first of the October PMIs showed manufacturing activity remained strong, while the Fed’s Beige Book reported continued “modest to moderate” growth.
Global Review
Foreign Economic Growth Probably Strengthened in Q3
* Real GDP growth in China rose from to 7.8 percent in Q3 from 7.5 percent in the second quarter, which should belie some fears that the Chinese economy is in the midst of a “hard landing.”
* The incipient recoveries that are underway in Western Europe appear to remain intact. Both the Eurozone and the United Kingdom likely registered positive GDP growth in Q3.
* The Brazilian economy continues to expand, but growth likely downshifted a bit in Q3.
Read full report: Economic Research
Wells Fargo