Business Week Index
THE WEEK AHEAD
GROSS DOMESTIC PRODUCT
Tuesday, Dec. 19, 8:30 a.m. -- The Commerce Dept. is expected to report that
real GDP, as measured on a chain-weighted basis, grew at an annual rate of 3.2%
in the third quarter. That's the median forecast of economists surveyed by MMS
International, one of The McGraw-Hill Companies, and it is slightly faster than
the 3% reported in October. Under the old 1987-dollar fixed-weight method, real
GDP grew at a 4.2% pace last quarter.
Tuesday, Dec. 19, 8:30 a.m. -- Starts likely rose to an annual rate of 1.35
million in November from October's 1.34 million.
Tuesday, Dec. 19 -- The Federal Open Market Committee of the Federal Reserve
will set monetary policy for the next six weeks. The MMS consensus is that the
federal funds rate will remain at 5.75%, but the recent soft data mean a
quarter-point cut in short-term rates cannot be ruled out.
Wednesday, Dec. 20, 8:30 a.m. -- The foreign trade deficit for goods and
services likely widened to $9 billion in October, from $8.3 billion in
September. Exports, which grew 1.6% in September, were little changed in
October, while imports, up 1.4%, probably rose at a faster pace in October.
Thursday, Dec. 21, 8:30 a.m. -- Personal income likely rose by 0.5% in October
and 0.3% in November, while consumer spending was probably flat in October and
up a small 0.4% in November. Because of the GDP revisions, the October and
November income and spending data will be released simultaneously. In
September, income grew 0.4%, while outlays rose 0.2%.
Thursday, Dec. 21 -- The Treasury Dept. is likely to announce a federal deficit
of about $38 billion in November, not much different from the $37.2 billion
deficit posted in November, 1994.