**MNI: 5 Things We Learned From Third Estimate of 3Q GDP>

By Kevin Kastner, Sara Haire and Holly Stokes

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

estimate of third quarter GDP data released Thursday by the Bureau of 

Economic Analysis: 

     - A small downward revision to 3Q GDP (+3.2% vs prev +3.3%) does 

not alter the picture of strong growth over the last two quarters.

     - The downward revision to GDP was due to softer PCE growth, 

smaller inventory growth, and a slightly wider trade gap. These were 

offset by strong government spending and a smaller drop in residential 

investment.

     - GDI +2.0% vs +2.5% in prev estimate and +2.3% in 2Q, putting the 

GDP/GDI average at +2.6% vs +2.9 in prev estimate and +2.7% in 2Q. This 

puts the alternative measure of growth at odds with the small 

acceleration in GDP from 2Q. 

     - The price measures were generally unrevised, with the GDP price 

index still +2.1%, but the closely watched core PCE price measure rev 

down to +1.3% vs prev +1.4%, The y/y rate remained at +1.4%, down from 

+1.5% in 2Q. 

     - Real final sales were revised down to +2.4% vs +2.5% in second 

estimate, reflecting the downward adjustment to PCE growth.

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

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