US Q3 GDP (second estimate) +2.8 vs +2.8% expected

• Advance Q3 reading was +2.8% annualized
• Final Q2 reading was +3.0% annualized

Details:

• Consumer spending +3.5% vs +3.7% advance
• Consumer spending on durables +8.1%
• GDP final sales +3.0% vs +3.0% advance
• GDP deflator +1.9% vs +1.8% advance
• Core PCE +2.1% vs +2.2% advance
• Business investment (nonresidential fixed investment) +% vs +3.3% advance
• PCE services inflation excluding energy and housing +2.6% vs +2.6% advance
• Corporate profits prelim 0.0%
• Personal saving rate 4.3% vs 4.8% advance

Contributors and subtractors to the 2.8% growth, in percentage points:

• Consumption: +2.37 pp vs +2.46 pp advance
• Government: +0.83 pp vs +0.85 pp advance
• Net International trade: -0.57 pp vs -0.56 pp advance
• Inventories: -0.11 pp vs -0.17 pp advance

The changes in this revision are immaterial. It’s a healthy economy that’s being led by consumption, though the revision lower in the savings rate is a bit worrisome, as are some of the comments from retailers in earnings reports recently.

This article was written by Adam Button at www.forexlive.com.