Investing.com – Gross domestic product (GDP) in the U.S. showed a much larger-than-expected expansion in the third quarter, hitting a two-year high, but consumer spending came in under estimates, according to official preliminary data released on Friday.
In a report, the Bureau of Economic Analysis said that GDP increased to a seasonally adjusted annual rate of 2.9% in the three month period from July to September, from the 1.4% expansion registered in the second quarter of 2016. That was its largest expansion since the third quarter of 2014.
Analysts had expected GDP growth to increase to 2.5%.
However, real consumer spending increased by only 2.1% in the third quarter, missing expectations for a 2.6% advance, and much lower than the prior quarter’s 4.3% jump.
The GDP price index for its part rose 1.5% in the third quarter, compared to the prior reading of a 2.3% increase and forecasts for a 1.3% gain.
Immediately after the report, EUR/USD was trading at 1.0916 from around 1.0922 ahead of the publication; GBP/USD was at 1.2131 from 1.2147 earlier; while USD/JPY was at 105.45 from 105.36 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 98.87, compared to 98.78 ahead of the report.
Meanwhile, U.S. stock futures pointed to a flat open. The Dow futures edged forward 11 points, or 0.06%, the S&P 500 futures inched up 1 point, or 0.05%, while the Nasdaq 100 futures traded up 5 points, or 0.11%.
Elsewhere, in the commodities market, gold futures traded at $1,263.45 a troy ounce, compared to $1,268.10 ahead of the data, while crude oil traded at $49.25 a barrel from $49.37 earlier.