Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Inventories to result in big hit to Q3 GDP

Inventories to result in big hit to Q3 GDP (by Steve Goldstein)

WASHINGTON (MarketWatch) -- Wholesale inventories data released Wednesday showing a 0.1% decline in September resulted in a large downgrade to third-quarter growth estimates, economists said. J.P. Morgan and Macroeconomic Advisers each cut their third-quarter GDP estimate by 0.7 percentage points -- to 1.6% and 1.7%, respectively -- compared to the first Commerce Department estimate of 2.5%. Barclays cut its tracking estimate to 1.8% from 2.4%. The decline could boost fourth-quarter output, because there was a smaller inventory accumulation during the third quarter, and Macroeconomic Advisers pushed their estimate for the final quarter up by three-tenths to 2.9%. J.P. Morgan didn't adjust fourth-quarter estimates, noting that imports could be more of a drag on fourth-quarter growth if petroleum inventories are restocked from foreign sources.