1. Euro-zone Consumer Price Index
2. U.S. GDP Annualized
3. Canadian Industrial Product Price
4. University of Michigan Confidence Survey

Euro-Zone Consumer Confidence (OCT) (9:00 GMT, 5:00 EDT)
Outlook: -15
Previous: -15

Outlook: Consumer confidence in the Euro-zone is expected to remain at a one year-low for the fourth month now at -15. Inflation, mostly caused by oil prices, is continuing to take a toll on consumers' budgets. With CPI well above the ECB's target range for price stability, many fear that higher prices will seep heavily into other sectors and high inflation will continue. As many economies of individual countries in the Euro-zone faltered, the ECB had not been able to raise rates to contain inflation. Although a rate hike is now eminent, consumers are still wary of their buying power. Political unrest in Germany is making consumers there uncomfortable, and continually high unemployment in France is hurting spending. Confidence in individual countries using the euro has, in general, stayed very low in recent months.

Previous: Euro-zone consumer confidence came in at -15, the lowest level of the year for the third month in September. With hurricanes in the US threatening to thwart the demand for European exports, sustained high unemployment and record high oil prices, consumers were feeling the pinch and did not have a positive outlook. Germany, Europe's largest economy, was about to go into an uncertain election as the survey was taken and consumers were bracing for tough political talks and possibly controversial policy changes in their near future. Meanwhile, the ECB had been refusing to change rates to battle inflation as economies in the Euro-zone falter. Without inflationary relief in sight and with doubts about the strength of their home economies, consumer sentiment is not very strong.

U.S. Gross Domestic Product (3Q) (12:30 GMT, 8:30 EDT)
Consensus: 3.6%
Previous: 3.3%

Outlook: Growth in the U.S. Gross Domestic Product, a measure of economic expansion, is expected to come in at a rate of 3.6% for the third quarter. Many of the consumption factors that have lead to growth in the first two quarters are likely to continue contributing to expansion in the third quarter. A strong housing market has supported growth on several levels. Homebuilding throughout the country continues to be strong as does purchasing of furniture and big-ticket electronic items to furnish these homes. Additionally, appreciating home values have given households the confidence and perception of extra income to continue spending in the face of high energy prices. Although auto sales were weak in August and September, they were offset by extraordinary July sales resulting from promotional discounts. To position themselves for future growth, businesses have continued fixed investment, which includes spending on commercial construction and the purchasing of equipment and software. It is estimated that overall consumer spending in the third quarter grew at a rate of 3.3% in spite of crippling energy prices. The economy is therefore expected to maintain its momentum through the end of the year, even as the cold winter months force consumers to spend on costly energy.

Previous: U.S. GDP grew at a healthy rate of 3.3% in the second quarter. Although this growth was slower than the 3.8% rate in the first quarter, the steady expansion was evidence of the economy's strength entering the Gulf Coast hurricane season. This marked the longest run of quarter-to-quarter growth since 1986, just before the market crash of 1987. Strong demand for housing, automobiles and business equipment all contributed to second quarter GDP expansion. Residential construction posted a 10.8% increase, up from 9.5% in the first quarter. Consumers took advantage of heavy employee discounts offered by automakers to the general public. Lastly, although some businesses cut back output to clear superfluous inventories, spending on business equipment and software increased by 10.9%--a jump from 8.3% growth in the first quarter. A number of factors, however, kept U.S. economic expansion from achieving the stellar rate seen in first quarter. Corporate profits rose at only 4.6% as opposed to the 5.6% increase in the first quarter. Consumer spending, which accounts for over two-thirds of the economy, was also slightly weaker, losing .1% from its previous pace.

Canadian Industrial Product Prices (MoM) (SEP) (12:30 GMT, 8:30 EDT)
Outlook: 0.5%
Previous: 0.3%

Outlook: Prices of Canadian industrial products leaving the gate in September are expected to have risen for the second month in a row. As Canada is a large exporter of industrial goods, many of its products are quoted in foreign currency of its trade partners, especially the US dollar. The Canadian dollar continued its climb against the US dollar and the other majors in September with oil prices at their record buoying the currency, making Canadian products comparatively more expensive. Sustained high oil prices were probably also a factor in higher costs of production and raw materials, pushing the product prices up even further.

Previous: Industrial product prices in August were up by 0.3 percent, the first growth after three months of declines. The IPPI, which measures the prices the producers in Canada receive as the goods leave the plant, not what consumers pay, rose due to higher prices of petroleum based products, meat, fish, dairy products, primary metals and chemicals. The index declined from a year earlier however, the third time in four months that prices were down from a year earlier. With many of the prices quoted in other currencies, action of the loonie also affected these prices. During August, the Canadian dollar strengthened steadily against its main trade partner's currency as well as against other majors as the price of oil climbed. This made goods coming from Canada seem relatively more expensive.

University of Michigan Confidence Survey (OCT F) (13:45 GMT, 9:45 EDT)
Consensus: 76
Previous: 75.4

Outlook: The University of Michigan's Confidence Survey is expected to have increased to a final measure of 76 for the month of October from a reading of 75.4 for the first half of the month. The gain in confidence for the remainder of the month results from a reassessment of the impact of the Gulf Coast storms. At this point, consumers have become more aware of the minimal effect that the hurricanes will have on long-term economic health. Post-Katrina prices of regular unleaded gasoline averaged a record of $3.069. The U.S. Department of Energy has reported that the average price has fallen 22 cents per gallon from this record. Additionally, home purchasing continues at a feverish pace and retail sales in the previous month have been surprisingly strong, suggesting that consumers have not let energy prices get in the way of overall spending. Although the survey is predicted to report an increase in confidence for the rest of the month, the survey value of 76 is still below September's value of 76.9. This is because although sentiment is expected to improve, the winter ahead and the high energy costs it implies is still likely to result in a tightening of pockets.

Previous: Consumer confidence in the U.S., according to the University of Michigan's Consumer Confidence Survey, fell from an index value of 76.9 in September to 75.4 for the first half of October. This is the lowest value the survey has registered since October 1992. The obvious culprit for this decline in confidence is the effect Hurricanes Katrina and Rita have had on energy prices. Exorbitant prices at gas pumps have left consumers with less discretionary income. Additionally, households feared that the pressure the storms placed on energy prices would translate into higher heating costs in the winter, discouraging purchasing due to budgetary constraints. Negative images of despair and destruction that have plagued the media of late have also taken a psychological toll as consumers feel less optimistic about spending in uncertain times.