Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Bob Cornell - Lehman Brothers. Please proceed.
Bob Cornell - Lehman Brothers
One big picture question first. Jeff, you were quoted awhile back as saying you saw the environment slowing, and maybe you could flesh out that idea and give us an idea how you see GE participating in that outlook.
Jeff Immelt
What I would say, Bob, is that if you just look at the macro impact of the interest rates on housing starts and the automotive industry in particular, that was the piece that I viewed as certainly slowing down. But I think, Bob, if you look at the appliance business, in terms of that's a business that you followed for a long time and we participate in, our retail revenues were up 18% in the quarter, and even with the slowing housing business, the sales there were still up 5% or 6%.
Again, what I would say is that as interest rates go up, you're going to see some slowing, but on balance the U.S. consumer is still pretty healthy and still spending money.
Bob Cornell - Lehman Brothers
So it seems. One follow-up question. You know, the Commercial Finance business came in, as Keith said, up 6% and you looking for a bigger gain in the quarter, and you talked about some things slipping into the fourth quarter. That sets up an absolute monster potential fourth quarter. Last year there were things moving out of the fourth quarter in Commercial Finance. This year we have things moving around. How visible and predictable is that business at this point and why are we seeing the earnings impacted by deals moving around?
Jeff Immelt
I would say it is still extremely predictable. If you think about the long term, the earnings are up 17% quarter-to-date. I think the earnings will be up 20%, 25% in Q4. Keith talked about some of the impact of the one-timers to offset Katrina in Q3 of 2005.
I think, Bob, if you think about it, we've got high, 25% plus ROE, good asset growth, a great spread of risk, and I just like the execution of the business and how we're positioned going forward.
Bob Cornell - Lehman Brothers
Okay. We'll stay tuned.
Operator
Next question is from the line of Jeffrey Sprague - Citigroup.
Jeffrey Sprague - Citigroup
Thanks. Good morning, everyone. I was just wondering if we could drill a little bit further maybe into the margin visibility as you think about the backlog. Maybe first and foremost I was thinking about Energy because that's the piece that's still kind of lagging. What would be the dynamics as we look into the fourth quarter and maybe the first part of next year that could start showing us some positive operating leverage within Energy? I guess maybe speak to the Equipment Service mix and Wind versus Gas Turbine.
- To read the full transcript on Seeking Alpha, click here »
