U.S. Review
FOMC Meeting Does Little to Change Our Outlook
• The Fed lowered its projections for GDP and unemployment slightly, but left a “considerable time” between ending its asset purchase program and its first rate hike, which we still expect in Q2 2015.
• Industrial production weakened in August, but much of the decline can be blamed on volatility in the auto sector. Otherwise, the factory sector remains solid, with regional PMIs coming in strong for September.
• Residential construction has been slow to improve, but homebuilder sentiment is gaining ground, which bodes well for new home sales out next week.
Global Review
Foreign Economic Data Mixed This Week
• Data released this week showed that U.K. economic growth largely remains resilient, although the data were largely ignored due to the market fixation on the Scottish independence vote.
• Weaker-than-expected economic data in China prompted some modest policy easing by the Chinese central bank this week. The first attempt by the ECB to boost bank lending appears to have been a bit disappointing.
Read the full report: Economic Research