"The tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement"
- The Federal Reserve
A bunch of mixed economic data from the United States was published on Thursday, reinforcing a view stimulus is still needed, while until October 17 markets are more likely to focus on the White House rather than fundamental data. The most important report came from the Commerce Department, which said the economic output was confirmed at a 2.5% annualized rate, unrevised from the previous projection and accelerating from the first quarter's 1.1% expansion. The figure, however, came short of analysts' expectations who called for a 2.7% growth. The main lift over the corresponding period came from private investment, which soared 9.2%, posting the sharpest increase since Q4 2012. Another worrying fact is that household consumption added less fuel to the economy, than it was expected.
Also, the National Association of Realtors said domestic home buyers singed fewer contracts to acquire existing home in August, due to higher mortgage rates and higher property prices. The so-called pending home sales plunged 1.6% monthly, however, they are still 5.8% higher from the previous year. The last but not least, the Department of Labor published its weekly report regarding the labour market. Figures showed the first-time jobless claims fell by 5,000 hitting 305,000, reflecting progress in the key labour market. The four-week moving average reached the lowest since June 2007.
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