They continue signals of strength in the end of the year

The indicators of consumer spending and production of October have surprised of good way, narrowing the differential between the strong expansive signal of surveys and details of actual activity, something more loose. Retail sales consolidated the excellent previous record (0.2 % vs 1.9 %) and the manufacturer production recovered with force (1.3 %, one of the better records of the cycle), thanks to the recovery of the refinery's sector (affected by Harvey). Furthermore, the inflation was lowered in October (2.0 % vs 2.2 %), because of the started from energy; although the underlying one increased until 1.8 % after remaining stable in the 1.7% from May.

In political matter, the Republican Party has achieved to approve the tax reform in the House of Representatives, which means a first step in the great review of the tax system in 31 years and it has been taken in of good way for markets. However, the law passed a lot is far of the version that they use own republicans in the Senate, which it hinders its definite approval before end of the year, that it is the objective of the administration Trump.

Source: Bankia Studies