October 2012 Flash Report

Yesterday, US stock exchanges reopened after super storm Sandy forced a two-day market closure. The massive storm has claimed dozens of lives, left millions without power and caused $20 billion of property damage, and is expected to shave about 10-20 basis points off of Q4 GDP growth as a result of lost business output. Earlier this month, the first estimate of 3rd quarter GDP growth came in at 2%, modestly exceeding forecasts. Most of the upside surprise was due to a spike in government spending on defense. Holding back GDP growth was a lack of business spending. Coupled with still growing cash piles for large corporations, it is clear that the uncertainty over future taxes, healthcare costs and regulations has caused CEOs to retrench. With any luck, some of this uncertainty will be resolved next Tuesday at the polls.

Download the flash report (PDF) here »

Skip to toolbar