Action Economics Survey results
Action Economics Survey results: it's been another rollicking week in the markets. Stocks were pummeled Wednesday and Thursday, in part on the bearish impact from rising rates, along with worries over trade frictions and concerns over slowing growth – though it's not as if those factors should have surprised. The FOMC remains on course to hike the funds rate another 25 bps in December due to solid growth and 2% inflation. But further tightening at year end has been the unanimous outlook from the Survey for months. Meanwhile, after the 4.2% rate of growth in Q2, GDP is expected to slow, albeit to a still healthy 3.2%, according to the Survey Median. While market gyrations will be closely monitored, attention will turn to the September retail sales report for insights. The Survey shows sales are expected to increase 0.6%, with the ex-auto component rising 0.4%. Industrial production is forecast edging up 0.2%, to bring capacity utilization up to 78.2%. The Empire State and Philly Fed manufacturing indexes should remain at solid levels. The housing market, however, looks to remain disappointing.