The US economy has grown by 1.9% in the third quarter, above 1.6% expected. Personal consumption carried the economy forward with a leap of 2.9% against 2.6% projected. It goes hand in hand with upbeat consumer sentiment.
However, business spending contracts again – a worrying sign. Trade wars seem to be taking a toll on the economy.
Core PCE met expectations at 2.2%. The deflator came out at 1.6%, below 1.9% projected.
The US Dollar is gaining some ground. USD/JPY is rising toward 109, EUR/USD is slipping toward 1.11, and GBP/USD is retreating from the 1.29 level.
Follow all the updates in the GDP live coverage
GDP Background
The US economy was expected to have slowed down in the third quarter of 2019 to 1.7% annualized. Investing and manufacturing were have been weighing on the economy while the consumer held it up. The stark difference between robust retail growth and drag from exports was the main story of second-quarter growth.
Earlier, ADP Non-Farm Payrolls came out at 125,000 for private-sector hiring in October, marginally above 120,000 expected. However, September's figure was revised down from 135K to 93K – a substantial downgrade.
The publication comes ahead of the Federal Reserve's rate decision later today. The Fed is set to cut interest rates for the third time in three months, but closing the door on any additional reductions.
See
- FOMC Preview: Three and done
- Fed Cheat Sheet: Three scenarios for EUR/USD price action as uncertainty is higher than usual
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