Growth of the U.S. economy in the third quarter was revised up more than expected while consumer spending moved higher, according to official data released on Tuesday.
The second estimate of third quarter (Q3) growth domestic product (GDP) showed growth of 3.2%, revised up from the initial reading of a 2.9% expansion. That was its largest growth since the third quarter of 2014.
Analysts were looking for a smaller upward revision to just 3.0%.
Real consumer spending for the July to September period rose by 2.8%, compared to the initial 2.1% increase.
The GDP price index was revised down to an increase of 1.4%, from the prior reading of a 1.5% advance.
Economists weren’t expecting any change.
Meanwhile, corporate profits jumped 7.6%, compared to the prior 1.9% decline.
Immediately after the report, the dollar moved higher. EUR/USD was trading at 1.0570 from around 1.0576 ahead of the publication; GBP/USD was at 1.2462 from 1.2475 earlier; while USD/JPY was at 113.30 from 113.04 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, traded at 101.66 compared to 101.55 prior to the release.
Meanwhile, U.S. stock futures pointed to a flat open. The Dow futures gained 11 points, or 0.06%, the S&P 500 futures advanced 1 point, or 0.05%, while the Nasdaq 100 futures slipped 1 point, or 0.02%.
Elsewhere, in the commodities market, gold futures traded at $1,180.00 a troy ounce, compared to $1,181.50 ahead of the data, while crude oil traded at $45.77 a barrel from $45.73 earlier.