MNI BRIEF: 3Q US GDP Slows To 2.8%; Core PCE Inflation 2.2%

MNI (WASHINGTON) - U.S. GDP growth decelerated slightly in the third quarter to an annual rate of 2.8% from 3.0% in the previous quarter, coming in two-tenths below analyst estimates, while core PCE inflation at 2.2% for the quarter was a tenth higher than expected, according to the Bureau of Economic Analysis's initial estimate Wednesday.  

Growth reflected increases in consumer spending, exports and federal government spending. Imports, a subtraction in the calculation of GDP, also increased. Personal consumption expenditures rose to 3.7% from 2.8% in the second quarter, and final sales to private domestic purchasers grew 3.2%, up from 2.7% in the previous three months.  

PCE inflation, the Fed's preferred measure, decelerated by a point to 1.5% in the third quarter, while core inflation cooled to 2.2% from 2.8%. (See: MNI POLICY: Bumpy US Data Won't Take Fed Off Steady Course)