Archived IMT (2008.09.26)

University of Michigan consumer sentiment index (final for Sep) drops to 70.3 from initial 70.9 but higher from Agust figure. Final US Q2 GDP was revised down to 2.8% from 3.3% due to a scaling down in personal consumption from 1.7% to 1.2%. Not only this suggests that the role of the stimulus package had already faded in Q2, but also confirms a contraction in Q3 GDP due to the negative retail sales, industrial production, durables and housing figures in the quarter. A US recession is a foregone conclusion and interest rate cuts are imminent at this point.