US Q3 GDP tracking rose one-tenth this week, driven by better housing market data. Q3 GDP forecast has been risen to 1.5% ahead of next week's advance estimate.
"Housing starts rose 6.5% m/m in September to 1.21mn on robust growth in multi-family construction. Stronger-than-expected housing starts suggest more residential investment; however, much of this activity is likely to show up in construction spending in Q4. Our Q3 GDP tracking was unchanged after rounding at 1.2%", says Barclays.
Existing home sales rose above expectations in September to 5.55mn on broad-based strength. The gain in sales suggests more brokers' commissions in Q3, which boosted our estimate of residential investment. Barclays Q3 GDP tracking estimate rose one-tenth to 1.3%.