GDP revision

Did u guys see the article on Bloomberg about the GDP revision?

This will seriously weaken the dollar.

http://www.bloomberg.com/apps/news?p...EW4&refer=home

Look at the date, October 27, 2006 15:14 EDT , that is old news

AllianceBernstein is an asset management firm. I guess they are short the dollar.

How is it old news if it was released on Friday at 3:15 Eastern Time? You don't think it will have an effect since it was released a short time before the market's closed? Or am I misreading something?
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the operative word is "BEFORE" and 2 hours is not a short time in Forex response to news, and it is not news, and it is not a revision either. Is an opinion by somebody that may have his own agenda

Guess i jumped the gun on this report.

"An unexpected increase in auto production last quarter was a statistical fluke that will be reversed, making current U.S. economic growth even weaker, according to a former Commerce Department economist."

I doubt however that this was priced into the market after its release.

Anybody know the way that the Commerce dept. releases corrections? Would it be on the next GDP report or will it be piggybacked on a different report?

Thanks

Paul

With what is coming out monday morning, I would not worry about that Friday article but about this

<TABLE class=tborder cellSpacing=0 cellPadding=3 width="100%" align=center border=0><THEAD><TR><TD class=alt2>8:30am </TD><TD class=alt2 align=middle>USD</TD><TD class=alt2>Richmond Fed President Lacker Speaks</TD><TD class=alt2 align=middle>http://www.forexfactory.com/forexfor...isc/mi_med.gif</TD><TD class=alt2 align=middle></TD><TD class=alt2 align=middle></TD><TD class=alt2 align=middle></TD><TD class=alt2 id=collapsecal_eventanalysis_2908 align=middle>[read] </TD></TR></THEAD><TBODY id=collapseobj_eventanalysis_2908 style="DISPLAY: none"><TR><TD class=alt1 style="PADDING-BOTTOM: 11px; BACKGROUND-COLOR: #f0feed" width="100%" colSpan=9>

<FIELDSET class=smallfont style="PADDING-RIGHT: 10px; PADDING-LEFT: 10px; MARGIN-BOTTOM: 9px; PADDING-BOTTOM: 2px; WIDTH: 70%; PADDING-TOP: 4px"><LEGEND>Definition</LEGEND>

Richmond Federal Reserve President Jeffrey Lacker will speak about monetary policy, in Baltimore Maryland. Audience questions expected.

</FIELDSET>

</TD></TR></TBODY><THEAD><TR><TD class=alt2 noWrap></TD><TD class=alt2>8:30am </TD><TD class=alt2 align=middle>USD</TD><TD class=alt2>Personal Spending m/m</TD><TD class=alt2 align=middle>http://www.forexfactory.com/forexfor...isc/mi_med.gif</TD><TD class=alt2 align=middle></TD><TD class=alt2 align=middle>0.2%</TD><TD class=alt2 align=middle>0.1%</TD><TD class=alt2 id=collapsecal_eventanalysis_2910 align=middle>[read] </TD></TR></THEAD><TBODY id=collapseobj_eventanalysis_2910 style="DISPLAY: none"><TR><TD class=alt1 style="PADDING-BOTTOM: 11px; BACKGROUND-COLOR: #f0feed" width="100%" colSpan=9>

<FIELDSET class=smallfont style="PADDING-RIGHT: 10px; PADDING-LEFT: 10px; MARGIN-BOTTOM: 9px; PADDING-BOTTOM: 2px; WIDTH: 70%; PADDING-TOP: 4px"><LEGEND>Definition</LEGEND>

Measures the total value of consumer purchases of goods and services over the past month. Consumer spending makes up two thirds of GDP and therefore a rising trend generally strengthens a country's currency.

</FIELDSET>

</TD></TR></TBODY><THEAD><TR><TD class=alt2 noWrap></TD><TD class=alt2>8:30am </TD><TD class=alt2 align=middle>USD</TD><TD class=alt2>PCE Price Index m/m</TD><TD class=alt2 align=middle>http://www.forexfactory.com/forexfor...isc/mi_med.gif</TD><TD class=alt2 align=middle></TD><TD class=alt2 align=middle>0.0%</TD><TD class=alt2 align=middle>0.2%</TD><TD class=alt2 id=collapsecal_eventanalysis_2911 align=middle>[read] </TD></TR></THEAD><TBODY id=collapseobj_eventanalysis_2911 style="DISPLAY: none"><TR><TD class=alt1 style="PADDING-BOTTOM: 11px; BACKGROUND-COLOR: #f0feed" width="100%" colSpan=9>

<FIELDSET class=smallfont style="PADDING-RIGHT: 10px; PADDING-LEFT: 10px; MARGIN-BOTTOM: 9px; PADDING-BOTTOM: 2px; WIDTH: 70%; PADDING-TOP: 4px"><LEGEND>Definition</LEGEND>

The Personal Consumption Expenditures (PCE) Price Index measures the rate of inflation experienced by consumers. Like CPI, it reflects the price change in consumer goods and services. PCE differs slightly from CPI in that it only measures goods and services targeted towards and consumed by individuals. Traders watch the PCE Price Index closely because it's the Federal Reserve's preferred consumer inflation indicator.

</FIELDSET>

</TD></TR></TBODY><THEAD><TR><TD class=alt2 noWrap></TD><TD class=alt2>8:30am </TD><TD class=alt2 align=middle>USD</TD><TD class=alt2>Core PCE Price Index m/m</TD><TD class=alt2 align=middle>http://www.forexfactory.com/forexfor...sc/mi_high.gif</TD><TD class=alt2 align=middle></TD><TD class=alt2 align=middle>0.2%</TD><TD class=alt2 align=middle>0.2%</TD><TD class=alt2 id=collapsecal_eventanalysis_2912 align=middle>[read]</TD></TR></THEAD></TABLE>

Hiring Pace Accelerated Last Month: U.S. Economy Preview


By Vince Golle

Oct. 29 (Bloomberg) -- The unemployment rate held at a five-year low in October and employers added more than twice as many jobs as a month earlier, according to a survey of economists.

The jobless rate stayed at 4.6 percent during the month, according to a Bloomberg News survey of economists before the Labor Department's Nov. 3 report. Some 125,000 jobs were created, compared with 51,000 in September, the survey showed.

Job growth will help recharge an economy that grew last quarter at the slowest pace in more than three years because of the battered housing market, economists said. A separate report tomorrow is forecast to show consumer spending quickened as the third quarter drew to a close.

``As long as job growth and wage gains hold up, household income is unlikely to weaken by enough to bring the consumer down,'' said Stephen Stanley, chief economist at RBS Greenwich Capital in Greenwich, Connecticut. Consumer spending is vital to the outlook for growth because it accounts for about two-thirds of the economy.

Gross domestic product grew at an annual rate of 1.6 percent in the third quarter after a 2.6 percent pace from April through June, the Commerce Department said last week. That's a far cry from the first quarter's 5.6 percent pace and evidence of how the yearlong housing-market downturn has dogged the economy.

The slowdown allowed the Federal Reserve to keep interest rates unchanged last week for a third straight month in anticipation inflation pressures will ebb.

``Economic growth has slowed over the course of the year, partly reflecting a cooling of the housing market,'' Fed policy makers said in a statement accompanying their decision. ``Going forward, the economy seems likely to expand at a moderate pace.''

Housing Construction

The decline in home construction subtracted 1.12 percentage points from gross domestic product in the third quarter, the most in almost 25 years, masking an acceleration in consumer purchases. Spending grew at an annual rate of 3.1 percent last quarter, faster than the 2.6 percent pace the prior three months, the Commerce Department's report showed.

``The consumer has remained resilient of late, largely because of the decline in energy prices, the stock-market rally and the solid labor market,'' said John Shin, an economist at Lehman Brothers Holdings Inc. in New York.

Personal spending increased 0.2 percent in September after a 0.1 percent rise a month earlier, according to the median estimate in the Bloomberg survey before tomorrow's report. Economists also forecast incomes to rise 0.3 percent for a second month.

`Solid' Income Growth

``Income trends look solid,'' said John Ryding, chief U.S. economist at Bear Stearns Cos. in New York. Aside from housing, ``I don't see the sources of weakness elsewhere in the economy.''

Job and income growth, higher stock prices and the lowest gasoline prices of the year combined to push up consumer confidence in October. The Conference Board is forecast to report on Oct. 31 that its index of consumer optimism increased to 108, the highest since April.

Three reports on manufacturing are also due this week. On Oct. 31, the National Association of Purchasing Management- Chicago is forecast to report that its business activity index dropped to 58 this month from 62.1. While the report measures all business activity, economists look to it as an indicator of manufacturing in the Chicago area.

Of the 10 largest U.S. counties, only Los Angeles has more manufacturing jobs than Cook County, which includes Chicago and many of its suburbs, according to figures from the Labor Department.

The Institute for Supply Management on Nov. 1 is forecast to report that its manufacturing index for October rose to 53 from 52.9.

The next day, the Commerce Department is forecast to report that factory orders jumped 4 percent in September, reflecting a surge in demand for Boeing Co. aircraft.






Bloomberg SurveyDate Time Period Indicator BN Survey Prior10/30 8:30 Sept. Personal Income 0.3% 0.3%10/30 8:30 Sept. Personal Spending 0.2% 0.1%10/31 8:30 3Q Employment Cost Index 0.8% 0.9%10/31 10:00 Oct. Chicago Purchasers 58.0 62.110/31 10:00 Oct. Confidence-Conf. Board 108.0 104.511/01 10:00 Sept. Construction Spending 0.0% 0.3%11/01 10:00 Sept. Home Resales Pending -0.9% 4.3%11/01 10:00 Oct. ISM Manufacturing 53.0 52.911/01 10:00 Oct. ISM Prices 58.0 61.011/02 8:30 Oct. 21 Continuing Claims 2441K 2449K11/02 8:30 Oct. 28 Initial Jobless Claims 310K 308K11/02 8:30 3Q P Productivity 1.2% 1.6%11/02 8:30 3Q P Unit Labor Costs 3.5% 4.9%11/02 10:00 Sept. Factory Orders 4.0% 0.0%11/03 8:30 Oct. Avg. Hourly Earnings 0.3% 0.2%11/03 8:30 Oct. Change Nonfarm Jobs 125K 51K11/03 8:30 Oct. Unemployment Rate 4.6% 4.6%11/03 10:00 Oct. ISM Non-Manufacturing 54.7 52.9</PRE>