Investing.com - Growth of the U.S. economy in the fourth quarter 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 fourth quarter (Q4) growth domestic product (GDP) showed growth of 2.1%, revised up from the previous reading of a 1.9% expansion.
Analysts had expected growth to increase to just 2.0%.
In more positive news, real consumer spending for the last three months of 2016 was also revised more than estimated to 3.5%, from the prior reading of 3.0%.
Economists had forecast spending growth to tick up to just 3.1%.
On the inflation front, personal consumption expenditure (PCE) prices were revised up to 2.0%, compared to the previous 1.9% increase and expectations for a 2.1% rise.
Core PCE prices rose 1.3%, compared to expectations for it to remain unchanged at a 1.2% increase.
The GDP price index showed an increase of 2.1%, above expectations for no revision at the prior 2.0% advance.
Corporate profits grew 2.3% in the fourth quarter, compared to a gain of 6.7% in the third quarter of last year.
With the data being three months old, market participants were more interested in looking ahead to the publication of the advanced estimate of first quarter GDP to be released on April 28.
Forecasts are showing a wide variation with the consensus looking for growth of 2.2% for the January to March period, while the New York Federal Reserve (Fed) predicts a 3.0% expansion, the St. Louis Fed a 2.7% increase and the Atlanta Fed, the most pessimistic, with a forecast of just 1.0%.
Immediately after the report, which was released simultaneously with weekly jobless claims, EUR/USD was trading at 1.0734 from around 1.0741 ahead of the publication; GBP/USD was at 1.2457 from 1.2459 earlier; while USD/JPY was at 111.31 from 111.20 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 99.98, compared to 99.95 ahead of the report.
Meanwhile, U.S. stock futures pointed to a slightly lower open. The Dow futures inched down 10 points, or 0.05%, the S&P 500 futures dropped 1 point, or 0.05%, while the Nasdaq 100 futures slipped 2 points, or 0.04%.
Elsewhere, in the commodities market, gold futures traded at $1,247.30 a troy ounce, compared to $1,249.95 ahead of the data, while crude oil traded at $49.90 a barrel from $49.70 earlier.