U.S. Review: A Little Less Shine on the Data
* The trade gap increased more than expected in September as exports slipped 0.2 percent and imports rose 1.2 percent. The print suggests trade should be more neutral for the second estimate of GDP in the third quarter based on what the BEA had previously assumed.
* Small business confidence fell more than anticipated as the federal government’s shutdown and run-up to the debt ceiling weighed on firms’ near-term expectations for the economy.
* Industrial production slipped 0.1 percent in October as utilities and mining output declined. Manufacturing output rose 0.3 percent despite a 1.3 percent drop in motor vehicles.
Global Review: Eurozone, Japan and Mexico: Mixed Results
* As expected, the Eurozone, as a whole, posted a rate of growth of 0.1 percent (not annualized) during the third quarter of the year after growing by 0.3 percent during the second quarter.
* Japanese real GDP beat market expectations when it increased at an annualized rate of 1.9 percent in the third quarter versus consensus expectations of 1.7 percent.
* Mexican industrial production dropped 1.6 percent on a year-over-year basis, driven down by a complete collapse of the country’s construction sector.
Read the full report: Economic Research
Wells Fargo