Investing.com - Growth of the U.S. economy in the first quarter (Q1) was revised up more than expected on Thursday, boosting optimism over the health the of the U.S. economy, according to official data.
The third estimate of first quarter growth domestic product (GDP) showed growth of 1.4%, revised up from the previous reading of a 1.2% expansion.
Analysts had expected growth to remain unchanged from the prior revision.
Real consumer spending for the first three months of 2017 was also revised up more than estimated to 1.1%, from the prior reading of 0.6%.
Economists had also forecast no change.
On the inflation front, personal consumption expenditure (PCE) prices went unrevised as expected at an increase of 2.4%.
Core PCE prices were revised lower to 2.0%, compared to expectations for it to remain unchanged at a 2.1% increase.
The GDP price index was also cut to 1.9%, below expectations for no revision at the prior 2.2% advance.
Corporate profits declined 2.7% in the first quarter, compared to a decrease of 2.5% in the fourth quarter of last year.
With the data being three months old and assurances from the Federal Reserve that first quarter weakness was “temporary”, market participants looked ahead to the publication of the advanced estimate of second quarter GDP to be released on July 28.
There is a wide divergence in expectations for growth in the April to June period, as the latest forecast from the New York Fed predicts a 1.9% expansion, while the Atlanta Fed projects growth of 2.9%.
After the report, which was released simultaneously with weekly jobless claims, the dollar pared losses. EUR/USD was trading at 1.1400 from around 1.1413 ahead of the publication; GBP/USD was at 1.2962 from 1.2969 earlier; while USD/JPY was at 112.61 from 112.64 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.63, compared to 95.58 ahead of the report.
Meanwhile, U.S. stock futures pointed to a mixed open. The Dow futures gained 16 points, or 0.08%, the S&P 500 futures rose 2 points, or 0.08%, while the Nasdaq 100 futures lost 33 points, or 0.57%.
Elsewhere, in the commodities market, gold futures traded at $1,246.06 a troy ounce, compared to $1,246.01 ahead of the data, while crude oil traded at $45.24 a barrel from $45.24 earlier.