U.S. Q4 GDP likely to post 2.4% growth

The elements of the CPI that is utilized as deflator in core retail sales were weaker than expected in October. Barclays estimates the PCE control group deflator inched down by , fell 0.1% m/m in October against +0.2% m/m in September.

Analysts were expecting the weakness in nominal October core retail sales is due to fall in price, which is confirmed by the data.

"The data boosted our tracking estimate of Q4 real PCE growth one-tenth to 2.9%, but kept our Q4 GDP tracking estimate unchanged at 2.4% after rounding", says Barclays.