Week Ahead: GDP and Merry Christmas

By Economic IndicatorsFOXBusiness

A final revision of third-quarter GDP and housing data will highlight next week’s economic calendar. All U.S. banks and securities markets are closed Thursday for the Christmas holiday.

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Analysts expect the third report on third-quarter GDP, out Tuesday, to show a $15 billion upward revision. About $7 billion is expected from construction spending -- both private and public, according to analysts at IHS Global Insight. Another $5 billion comes from the Census Bureau’s third-quarter Quarterly Services Survey. Consequently, third-quarter real GDP growth is expected to be revised up to 4.3% from 3.9% in the Second Estimate and 3.5% in the Advance Estimate.

A report on existing home sales, due out Monday, is expected to show the numbers fell 3.2% to 5.09 million in November after two consecutive months of increase. Mortgage applications dropped in October, and there were four fewer days to register a sale in November than there were in October, according to IHS Global.

Consumer spending likely increased 0.4% in November. A report on consumer sentiment is due out Tuesday. The nominal spending figure was likely held back by a drop in gasoline prices. Adjusting for inflation, spending is expected to have increased by 0.6% partly as a result of strong auto sales last month.

Durable goods orders, due out Tuesday, are expected to have risen by $11.5 billion or 4.7%  in November with aircraft orders accounting for much of that gain, IHS Global predicted. Most other components (vehicles, core capital goods, and machinery) should indicate a decent “but not great” month, according to the IHS analysts, but those gains will be outweighed by a slump in defense orders after a 21% spike in October.

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