US Q3 GDP (second estimate) 5.2% vs 5.0% expected

<ul><li>Advanced reading was +4.9% </li><li>Q2 final reading was +2.1%</li><li>Personal consumption +3.6 vs +4.0% advance reading</li><li>Core PCE prices +2.3 vs +2.4% expected</li><li>PCE prices +2.8% vs +2.9% advance</li><li>GDP deflator +3.5% vs +3.5% expected</li><li>GDP final sales +3.7% vs +3.5% advanced</li><li>Corporate profits after tax +4.1% vs +0.5% in Q2</li><li><a href="https://www.bea.gov/sites/default/files/2023-11/gdp3q23_2nd.pdf" target="_blank" rel="nofollow">Full report</a></li></ul><p>Percentage point changes: Net trade -0.04 pp vs -0.08 pp advance Inventories +1.40 pp vs +1.32 pp advance Govt +0.94 pp vs +0.79 pp advance</p><p>Increases in inventories and government spending explain the higher revisions to GDP. At some point, when government spending slows down, those gains will be reversed but inventories are less predictable.</p><p>"The update primarily reflected upward revisions to nonresidential fixed investment and state
and local government spending that were partly offset by a downward revision to consumer spending," the release said.</p><p>In terms of the market, the slower consumer spending might be the takeaway from this report. Dollar Tree today also cut its guidance and highlighted that the low-income consumer is struggling. Both point to a slowdown in the consumer ahead, which will end the inflation threat.</p>

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