US Real GDP grows at an annual rate of 4.9% in Q3
- The US economy grew at an annual rate of 4.9% in Q3, revised from 5.2%.
- The US Dollar Index remains in negative territory, struggling to hold above 102.00.
The real Gross Domestic Product (GDP) of the United States expanded at an annual rate of 4.9% in the third quarter, the US Bureau of Economic Analysis' (BEA) final estimate showed on Thursday. This reading came below the the previous estimate and the market expectation of 5.2%.
“The update primarily reflected a downward revision to consumer spending. Imports, which are a subtraction in the calculation of GDP, were revised down”, the BEA said.
“Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected an upturn in exports and accelerations in consumer spending and private inventory investment that were partly offset by a deceleration in nonresidential fixed investment”, the publication read.
The price index for gross domestic purchases increased 2.9% in the third quarter, a downward revision of 0.1 percentage point from the previous estimate. The Personal Consumption Expenditures (PCE) Price Index increased 2.6% percent, a downward revision of 0.2 percentage point. Excluding food and energy prices, the PCE Price Index increased 2.0%, a downward revision of 0.3 percentage point.
Market reaction
The US Dollar Index (DXY) declined following the release of US economic data that included the new GDP reading, Jobless Claims data, and the Philly Fed. The DXY dropped below 102.00.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
