With 3 back to back months of negative retail sales growth, we are looking at a very weak third quarter GDP that will show minimal improvement in growth. The Empire State Manufacturing index rose to 7.39 from 2.29 in July but this uptick in NY manufacturing conditions will be lost amongst the weak retail sales number.
While this morning's U.S. consumer spending report hardens the case for QE3, it does not change our view that nothing new will come from Bernanke on Tuesday and Wednesday, when he delivers his semiannual testimony.
Comments