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U.S. Q3 GDP Growth Hits 1-Year High, Beating Expectations

Published 11/29/2017, 08:31 AM
Updated 11/29/2017, 08:31 AM
© Reuters.  U.S. Q3 GDP revised to growth of 3.3% vs. 3.0% forecast

Investing.com - Growth of the U.S. economy in the third quarter was revised even higher expected, although consumer spending unexpectedly eased, according to official data released on Wednesday.

The second estimate of third quarter growth domestic product (GDP) showed growth of 3.3%, compared to an initial reading of 3.0%.

Analysts were looking for an upward revision to just 3.2%.

That compared to an expansion of 3.1% in the second quarter of the year and was its highest level since the third quarter of 2016.

However, real consumer spending for the July to September period was revised downwards to a gain of 2.3%, compared to the initial 2.4% increase.

Economists had expected an upward revision to 2.6%.

The GDP price index was revised slightly lower to 2.1%.

Analysts had forecast no change to the initial increase of 2.2%

The core PCE price index showed a gain of 1.4%, from the previously reported 1.3% advance.

Economists had expected no change.

Meanwhile, corporate profits jumped with a 5.8% gain, compared to the prior 0.1% advance.

Business investment increased by 4.7%, up from the flash estimate of a 3.9% advance.

After the report, EUR/USD was trading at 1.1829 from around 1.1825 ahead of the publication; GBP/USD was at 1.3394 from 1.3393 earlier; while USD/JPY was at 111.95 from 111.91 earlier.

The US dollar index, which tracks the greenback against a basket of six major rivals, traded at 93.30 compared to 93.31 prior to the release.

Meanwhile, U.S. stock futures pointed to a mixed open. The Dow futures gained 75 points, or 0.31%, the S&P 500 futures edged forward 2 points, or 0.06%, while the Nasdaq 100 futures slipped 3 points, or 0.04%.

Elsewhere, in the commodities market, gold futures traded at $1,287.16 a troy ounce, compared to $1,288.52 ahead of the data, while crude oil traded at $57.72 a barrel from $57.80 earlier.

Latest comments

Oh I didnt expected that it will effect much on gold rate
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