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mpc: 10 Estimated GDP growth for 2004 Q3 in the United States had been slightly weaker than expected, but consumption growth had picked up after dipping in Q2. Indicators of likely growth in Q4 were mixed. The PMI for manufacturing had fallen in October but the business activity component of the PMI for non-manufacturing had risen strongly, and both indices had remained consistent with continued growth. Consumer confidence had fallen slightly from September to October, with weak employment growth remaining an important influence. But the weekly initial claims data had pointed to a possible revival in labour demand. Business investment remained robust, suggesting confidence in economic prospects. Perhaps consistent with continuing high investment, corporate net borrowing had turned positive again after a period in which US companies had made net repayments of debt, and many US companies were also holding large cash balances. In the near term, domestic demand would also be supported by the continuing stimulus from monetary and fiscal policy.