US Q3 GDP revised down to 2.0 pct from 2.2 pct previously

BY

Lower spending on health care caused the US economy to slow more in the summer than previously thought while the Federal Reserve s preferred measure of inflation remained at the highest annualised pace in more than a decade, the Commerce Department said Thursday.

The department estimated the economy grew at a 2.0 pct annualised rate between July and September, down from the 2.2 pct rate estimated a month ago.

Economists had been expecting growth to remain at a 2.2 pct annualised rate in the quarter. Economic growth has slowed sharply from the first half of the year. In the first quarter, the economy recorded a sizzling 5.6 pct growth rate, while growth in the second quarter came in at 2.6 pct.

The Fed s preferred measure of inflation, the core PCE price index, which excludes volatile food and energy prices, rose by 2.2 pct in the quarter, unrevised from last month s estimate. The core PCE price index in the prior quarter was 2.7 pct.

Over the past 12 months, the core PCE price index has risen an unrevised 2.4 pct, the sharpest annual rise since the second quarter of 1995.

The overall PCE price index rose 2.4 pct in the quarter, also unrevised from the prior estimate. That s down sharply from the prior quarter s 4.0 pct increase.
Consumer spending, which accounts for as much as two-thirds of the economy, rose a revised 2.8 pct in the third quarter, compared to the 2.9 pct increase estimated last month and after rising 2.6 pct between April and June.

The department said the slowdown in consumer spending was driven by better data on medical care spending, which was revised lower.

Final sales rose a revised 1.9 pct in the in third quarter, slower than the 2.1 pct in the prior quarter.

Corporate profits after tax rose a revised 4.2 pct in the quarter, down slightly from the 4.6 pct gain estimated last month. Profits rose just 0.3 pct in the second quarter after surging 14.8 pct in the January to March period.

BY

US NOV LEADING INDEX +0.1% VS OCT +0.1% (PREV +0.2%)

BY

The dollar remained steady against other major currencies, shrugging off data showing its third quarter GDP figure was revised down slightly.

The final estimate for third quarter growth in the US was revised to a yearly 2.0 pct rate from 2.2 pct due to weaker spending on health care than earlier estimated. At the same time, the Federal Reserve s preferred measure of inflation, the core PCE, remained unrevised at the high rate of 2.2 pct. Weekly jobless claims, published at the same time, came in at 315,000, not far from the 310,000 expected by analysts.

"US GDP data played little role as headline growth rates slowed slightly but price measures edged up," said Jamie Coleman at IFR Markets.

The dollar, which had been creeping higher all day, nevertheless saw a small dip after the data, bringing it towards 1.317 against the euro. Although movements are limited by small -- and decreasing -- volumes ahead of the holiday season, economists said more data later today may yet affect price levels.

"The Philadelphia Fed (survey of economic activity) will probably be more important to the dollar than either the revised GDP or the jobless data," said David Bloom at HSBC.

The indicator, to be published at 3.00 pm, is expected to slow to 4.0 from 5.1 in the prior reading, reflecting a slowdown in the wider US economy.

Bloom at HSBC noted that positive sentiment continues to stick to the euro, with traders eager to buy on any dips against the dollar.

In the UK, the pound had been weakening slightly against the dollar since the morning, with trades testing resistance at the two-day low of 1.9580.

The US GDP data saw some knee-jerk bids for the pound, although movements have likewise remained small, analysts at IFR Markets said.

The only data left before markets close for Christmas holidays are UK mortgage statistics due tomorrow. Figures published in the past two weeks have consistently surprised to the upside, suggesting the Bank of England s two quarter point hikes this year have yet to affect a buoyant housing market.

俗人Ag

可惜是英文的，有些看不懂，只好等高手们翻译啦！谢谢

kwy

Thanks BY!!!