Daily Economic Outlook: 25th September, 2015

Risk sentiment continued to remain subdued yesterday, pushing major global equity indices further lower after losses from earlier in the week. A key influence remains the uncertainty over the outlook for US monetary policy following recent comments from various FOMC members, which has done little to shift perceptions over the timing of the first hike in US interest rates, says Lloyds Bank. 

Looking ahead to today's events, speeches by Fed members Bullard and George are likely to attract some attention given their relatively hawkish stance compared with the rest of the FOMC. Neither are voting members this year, although they are voting participants next year and should provide some insight into the mix of the Committee in 2016.

Data wise, the focus will be on the third estimate of Q2 US GDP. The flow of incoming data since the second estimate has suggested that upward revisions to consumption and residential investment are likely in today's print. However, with downward revisions also expected for inventory investment, the net impact is likely to be broadly neutral, hence, GDP growth in Q2 is expected to be unchanged at 3.7%, added Lloyds Bank.