Today's U.S. reports
Today's U.S. reports revealed upside surprises for both housing starts and trade prices in August, alongside a wider than expected Q2 current account deficit. For starts, analysts saw August declines of 0.8% for starts and a big 10.2% for completions, but analysts also saw a 5.7% pop for permits, a strong trajectory for starts under construction, and upward starts revisions that left a solid Q3 path. For trade prices, analysts saw big 0.6% August headline import and export price increases led by oil imports and nonagricultural exports with a likely Harvey-boost, before an assumed September lift from Irma. The U.S. current account gap widened to $123.1 B from $113.5 (was $116.8) B in Q1 thanks to a surge in the deficit on secondary income. Analysts still assume a Q3 GDP growth of 2.6% after a Q2 growth boost to 3.1% from 3.0%.