U.S. Review
Finding a Better Balance at Year-End
* The majority of recent economic reports easily exceed the cautious expectations laid out for the holiday season and the fourth quarter.
* The JOLTS reported a slight pickup in job openings during October. The number of open positions is higher than at any time since the recession ended.
* Retail sales rose 0.7 percent in November, and sales for the prior month were revised higher. The better sales figures should alleviate fears about the holiday shopping season.
* Business inventories rose more than expected in October.
Global Review
Economic Growth in China Has Stabilized
* Recent economic indicators out of China suggest that the year-over-year rate of real GDP growth in that country is stabilizing in the 7 percent to 8 percent range. We feel comfortable with the 7.5 percent growth rate that we project for the fourth quarter.
* The Chinese renminbi strengthened versus the U.S. dollar this week. This currency appreciation may reflect the government’s judgment that the economy is strong enough to withstand a stronger currency.
Read the full report: Economic Research
Wells Fargo