The US Bureau of Economic Analysis showed that the US economy grew at an annual rate of 2.9% during the third quarter, surpassing expectations and the previous estimate of 2.6%. Analysts at Wells Fargo, point out that the still modest growth in the core areas of the economy and weakness in real gross domestic income, more clearly demonstrates the slowdown in Q3 economic growth.

Key Quotes: 

“The headline continued to be flattered by a sizable gain in net exports due to an unsustainable gain in exports and decline in import activity.”

“There was also a modest upward revision to real personal consumption expenditures, which now look to have risen at a 1.7% annualized pace in Q3 amid upward revisions to goods consumption specifically. Real final sales to domestic purchasers were thus revised modestly higher to nearly a 1% gain in Q3, demonstrating a still-slow but better pace of growth for the core of the U.S. economy.”

“This release also included the first look at Gross Domestic Income (GDI), which in theory should be equivalent to GDP. The two have diverged recently, but the gap in the year-ago pace of the two narrowed to just 0.4% in Q2, from 1.1% in Q2. Still, the more modest 0.3% gain in the annualized rate of real GDI for Q3 and downward revisions to Q2 which flipped a 0.1% gain to a 0.8% decline provide further evidence the economy is slowing. The headline GDP growth rate continues to overstate strength in Q3, in our view.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Inside day Friday opens risk of a lower close on Monday, 0.7050 eyed

AUD/USD: Inside day Friday opens risk of a lower close on Monday, 0.7050 eyed

AUD/USD was the best performer for the G7 last week and Aussie bulls could be trapped up high for the week ahead which holds a number of key data events. The following illustrates a bearish bias for the initial balance of the week, Monday with 0.7050 eyed.

AUD/USD News

EUR/USD faces fragile barricades below 1.0900 ahead of German GDP data

EUR/USD faces fragile barricades below 1.0900 ahead of German GDP data

The EUR/USD pair is struggling to extend its recovery move above the immediate resistance of 1.0870 in the early Tokyo session. The major currency pair delivered a rebound move from the previous week’s low around 1.0840 amid a restricted upside in the US Dollar index (DXY).

EUR/USD News

Gold trapped bulls into the Fed and NFP Premium

Gold trapped bulls into the Fed and NFP

Gold prices steadied, with gains capped by the stronger dollar and analysts at TD Securities argued that the yellow metal need only close above the $1,935 range to catalyze a marginal buying program, whereas a close below the $1,890 mark is required to spark a trend follower selling flow.

Gold News

Hedera missed the opportunity to reach that target before the fade kicked in

Hedera missed the opportunity to reach that target before the fade kicked in

Hedera (HBAR) price has been shooting for the starts but looks to be dropping like a stone now. Just like Icarus, who flew too close to the sun, this time, Hedera came just not close enough to the projected price target for this rally.

Read more

Central bank fest as dollar continues its decline

Central bank fest as dollar continues its decline

The focus this week is the Federal Reserve meeting, the Bank of England rate decision and Monetary Policy Report and the ECB meeting. This troika of central bank decisions could set the tone for the rest of the year: the Federal Reserve passing the baton of global leader when it comes to tightening monetary policy.

Read more

Forex MAJORS

Cryptocurrencies

Signatures