Q3 adv GDP +3.5% vs +3.3% expected, down in.>

US DATA: Q3 adv GDP +3.5% vs +3.3% expected, down from +4.2% in Q2. The 

GDP price index was +1.7% vs +1.9% expected and +3.0% in Q2. Overall the 

data suggest a modest deceleration after a very strong Q2, with the 

slowdown led, as expected, by the net export category, with a rebound 

in inventories countering some of that.

- When the inventory rebound is removed, real final sales of domestic 

product +1.4% vs +5.4% in Q2. Final sales to domestic purchasers +3.1% 

vs +4.0% in Q2.

- The core PCE price index was +1.6% in Q3 after +2.1% in Q2, for y/y 

rate of +2.0% Q3 vs +1.9% Q2.

- The deceleration in growth was due to softer contributions from 

net exports (-1.78pp vs +1.22pp), nonres fixed investment (+0.12pp vs 

+1.15pp), and res fixed invest (-0.16pp vs -0.05pp). These were offset 

by stronger contributions from PCE (+2.69pp vs +2.57pp), govt spending 

(+0.56pp vs +0.43pp), and inventories (+2.07pp vs -1.17pp).