US: Consumer sentiment and wholesale inventories in focus - Nomura

Analysts at Nomura note that US consumer sentiment remained elevated in both the University of Michigan and Conference Board surveys, indicating sustained consumer optimism closing out 2017.

Key Quotes

“For the preliminary December reading from the University of Michigan, we expect sentiment to remain buoyant. Moreover, inflation expectations stabilized somewhat during 2017 after a slow decline since 2012. In November, expected inflation over the next year ticked up 0.1pp to 2.5% while medium-term (5 to 10-year) inflation expectations ticked down 0.1pp to 2.4%.” 

“Wholesale inventories: In an advanced estimate, wholesale inventories fell 0.4% in October, driven by a 1.4% decline in inventories for nondurable goods. Inventory investment during Q3 contributed a solid 0.8pp to topline real GDP growth but softer inventory buildup during Q4 could add some drag to growth in the current quarter.”