**MNI 5 THINGS: US Q3 GDP Rev To +3.4%; Nov Dur Orders +0.8%>

--5 Things We Learned From Friday's Data

By Kevin Kastner, Harrison Clarke, and Shikha Dave

     WASHINGTON (MNI) - The following are the key points from the third 

estimate of third quarter GDP and November durable goods data released 

Friday by the Department of Commerce: 

     - Third quarter GDP was revised down slightly to +3.4% SAAR in the 

third estimate, below expectations for an unrevised 3.5% gain. The GDP 

price index was revised up to +1.8%, while the core PCE price index was 

revised up to +1.6%, but still +2.0% year/year. The data do not alter 

the picture of a slowdown in from the second quarter. 

     - Also released on Friday, durable goods orders were +0.8% in 

November, compared with expectations for a flat reading, as 

transportation orders surprised with +2.9% on gains in aircraft and the 

unpublished transportation categories. Durables orders excluding 

transportation were -0.3%, in contrast to +0.4% expected by analysts. 

Durables shipments were +0.7%, while nondefense capital goods shipments 

+2.4%, but -0.1% excluding aircraft. 

     - For GDP, residential investment was revised down to -3.6% from 

-2.6% and the net export gap, which was a large drag on third quarter 

GDP, was revised wider to -$949.7b from -$945.8b in the previous 

estimate. However, the change in inventory investment was revised up 

+$89.8b vs +$86.6b in the previous estimate. 

     - PCE was revised down to +3.5% from +3.6% in the previous 

estimate, still below the +3.8% reading in the second quarter, but 

solid. It appears that consumption will add to fourth quarter GDP as 

well. Nonresidential fixed investment was unrevised at +2.5%.

     - The prices measures were revised modestly higher, with the GDP 

price index now at +1.8% vs prev +1.7%, while the closely watched core 

PCE was revised up to +1.6% from +1.5%. The y/y rate stayed at +2.0%, up 

slightly from +1.9% in the second quarter. Real final sales of domestic 

product were revised downward to +1.0% vs +1.2% in previous estimate. 

Final sales to domestic purchasers were revised downward to +2.9% from 

+3.1% in the previous estimate. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]