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US data sheds positive light on growth - ING

FXStreet (Łódź) - James Knightley from ING looks at the US economic data released on Thursday which in his opinion suggests strong growth momentum despite concerns.

Key quotes

"Today’s data suggests that the US economy remains in pretty good shape even if bond and equity markets have their doubts."

"Jobless claims plunged to 264,000 last week, the lowest reading for over 14 years, which indicates that payrolls growth should accelerate."

"Meanwhile, industrial production jumped 1%MoM, the largest rise since November 2012 versus expectations of a 0.4% gain."

"Manufacturing rose 0.5% even while auto output fell 1.4%MoM. Utilities output rose 3.9% and mining jumped 1.8%."

"All in all these are a really strong set of numbers that point to very decent GDP growth numbers for both 3Q and 4Q14, especially when you add in the huge boost to household spending power from plunging gasoline prices."

"Falling mortgage rates in the wake of the bonds market moves should also be supportive for growth. The risk that we have to be alert to is that the fall in equities and Ebola concerns sap confidence and households save this windfall."

United States NAHB Housing Market Index below forecasts (59) in October: Actual (54)

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