US Q3 advance GDP +4.9% vs +4.3% expected

<ul><li>Final Q2 <a href="https://www.forexlive.com/news/us-q2-2023-final-gdp-21-vs-21-expected-20230928/" target="_blank" rel="follow"> reading </a>was +2.4% annualized</li><li>Q1 was +2.0% annualized</li><li>Best quarter since Q4 2021</li><li>Estimates ranged from 2.5%-6.0%</li></ul><p>Details:</p><ul><li>Consumer spending +4.0% vs +0.8% prior</li><li>Consumer spending on durables %</li><li>GDP final sales +3.5% vs +4.5% expected (+2.3% prior)</li><li>GDP deflator 3.5% vs +2.5% expected (+2.2% prior)</li><li>Core PCE +2.4% vs +2.5% expected (+3.8% prior)</li><li>Exports +6.2% vs -9.3% prior</li><li>Imports +5.7% vs -7.6% prior</li><li>Business investment +8.4% vs +5.2% prior</li></ul><p>Percentage point changes:</p><ul><li>Net trade -0.08 pp vs +0.04 pp prior </li><li>Inventories +1.32 pp vs 0.0 pp prior</li><li>Govt +0.79 pp vs +0.57 pp prior</li></ul><p>The <a href="https://www.forexlive.com/centralbank/atlanta-fed-gdpnow-final-estimate-for-3q-growth-comes-in-at-54-20231025/" target="_blank" rel="follow">final </a>Atlanta Fed GDPNow tracking estimate for GDP was +5.4%.</p><p>The inflation metric is stale but it's surprisingly high and the market isn't sure how to read that because it could mean that Q4 inflation is lower or could be a sign of stickier inflation.</p>

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