Q3 GDP revised down to +3.4% SAAR vs +3.5%..>

US DATA: Q3 GDP revised down to +3.4% SAAR vs +3.5% prev, with a 

large downward revision to the residential investment decline the key 

factor. Additionally, the net exports gap was revised marginally wider, 

but inventory growth was revised up. The advance Q4 estimate will be 

released on January 30 

- Real PCE was revised down slightly to +3.5% from the +3.6% prev 

estimate, while nonresidential fixed investment and government spending 

were unrevised. 

- Real GDI was revised up to +4.3% from prev +4.0%, while the GDP/GDI 

average stayed at +3.8%.

- The price measures were revised only modestly higher. The overall GDP 

price index was revised up to +1.8% from +1.7% prev and the closely 

watched core PCE price measure was revised up to +1.6% from +1.5%, while 

the y/y rate was unrev +2.0%, up slightly from +1.9% in Q2. 

- Due to the mix of revisions, real final sales of domestic product were 

rev down to +1.0% vs +1.2% in prev estimate, while sales to domestic 

purchasers were rev down to +2.9% vs +3.1% prev.