US economic growth slowed sharply in the third quarter of the year. Gross domestic product grew at an annualized pace of 1.5% between July and September, down from a rate of 3.9% in the second quarter. The slowdown was partly due to companies running down stockpiles of goods in their warehouses.
US consumer confidence fell to its lowest levels in four months in October, according to the Conference Board. The sentiment index fell to 97.60, from a revised 102.6 reading in September. The drop comes following two straight months of gains and after the release of a disappointing durable goods numbers.
Republicans in the US Congress have reached a compromise budget deal with the White House to avert the prospect of a renewed government shutdown. If passed by both houses, the two-year deal will increase spending by US$80bn. It will also be the last budget deal reached by President Barack Obama, lasting until March 2017.
Germany seems to have freed itself from deflation for now, as consumer prices rose 0.2% YoY in October after declining 0.2% in September. Germany briefly dipped into deflation in January for the first time in more than six years.
British banks last month approved the smallest number of home loans since May in the latest sign that growth in the UK property market is possibly starting to slow down. Figures from the British Bankers' Association show its members approved 44,489 mortgages last month, down from 46,567 the previous month.
Sweden's Riksbank has held interest rates at negative 0.35%, though it has ramped up its fight against deflation by expanding its bond-buying program by an extra SKr65bn and pledging to keep the benchmark repo rate at the current nadir "for a longer time." The QE extension will take the total to SKr200bn by the end of June 2016.
Italy's unemployment rate unexpectedly fell in September to 11.8% from 11.9% in August. The loss of 36,000 jobs during the last month could signaled difficulties for Prime Minister Matteo Renzi's plans to put the economy on a sustainable growth path.
September figures on Japanese household spending have heightened fears that Japan's economy fell into a recession last quarter. The consumption fell 0.4% YoY last month, after a 2.9% gain in August as spending slowed on household goods and utilities.
Australian private sector credit accelerated at the fastest pace in seven years during September reporting an increase of 0.8% MoM, resulting in a 6.7% year-on-year. Credit extended to firms jumped by 1.2% in September, also a seven-year peak, leaving the annual rate at 6.8%.
New Zealand's trade deficit hit a 12-month high last month as exports falter and dairy prices remain sour. The deficit was NZ$1.222bn in September, marking the fourth trade shortfall in a row. While the September deficit is actually smaller than the NZ$1.359bn gap one year before, the last two deficits are each above NZ$1bn, a worrying trend.
Brent crude held close to US$49 a barrel on Friday, poised to post its first weekly gain in three weeks despite a supply glut that has tested storage capacity and hammered oil company results. Brent crude was trading 35 cents higher at US$49.15 a barrel.
