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REPEAT: MNI DATA ANALYSIS: US 3Q GDP Rev Up To +3.3%>

Repeats Story Initially Transmitted at 13:30 GMT Nov 29/08:30 EST Nov 29
--PCE Revised Modestly Lower, But Upward Revisions Seen Elsewhere
--Core PCE Price Index Revised Up To +1.4%, Y/Y Now +1.4% Vs +1.5% 2Q
By Kevin Kastner and Holly Stokes
     WASHINGTON (MNI) - Third quarter GDP growth was revised up to a 
3.3% annual rate from the 3.0% pace in the advance estimate, as 
expected, data released Wednesday by the Bureau of Economic Analysis 
showed. 
     A modest downward revision to PCE growth was more than offset by 
upward revisions to every other GDP component, particularly fixed 
investment.
     Within consumption, which is now reported up 2.3% for the quarter 
compared with the 2.4% advance estimate, there were very small downward 
revisions to both durable and nondurable goods PCE. Services PCE was 
unrevised. 
     Nonresidential fixed investment was revised higher to a 4.7% pace 
from the 3.9% gain in the advance estimate, with upward adjustments to 
equipment and intellectual property that offset a downward revision to 
structures investment. 
     Residential fixed investment was revised up to 5.1% rate of decline 
from the 6.0% rate of decline in the advance estimate.
     Inventory investment was revised up to a $39.0 gain for the quarter 
from $35.8 billion in the advance estimate. The net export gap now 
stands at $594.4 billion, slightly smaller than $595.5 billion in the 
advance estimate. 
     Government spending turned around, rising 0.4% in the second 
estimate after being reported down 0.1% in the advance estimate.
     As a result of the mix of revisions, real final sales were revised 
up to a 2.5% gain from the 2.3% increase in the advance estimate. 
     The first estimate of third quarter Gross Domestic Income was a 
2.5% gain, up from 2.3% in the second quarter. This puts the GDP/GDI 
average at a 2.9% gain for the third quarter, stronger than the 2.7% 
increase seen in the second quarter. 
     The key price measures were only modestly revised in the second 
estimate for the quarter. The chain price index was revised down to a 
2.1% gain from the previously reported 2.2% rise, but still up sharply 
from the 1.0% gain in the second quarter. 
     The closely watched core PCE price index was revised up to a 1.4% 
rise from the 1.3% gain in the advance estimate. As a result, the 
year/year rate for the measure was revised up to 1.4% from the 1.3% 
year/year gain in the advance estimate. The year/year rate was 1.5% in 
the second quarter. 
     Overall, the data suggest that economic growth remained solid, 
with gains over 3.0% in each of the last two quarters after the usual 
lull in the first quarter. GDP appears on track to improve in 2017 from 
the 1.8% rise in 2016, barring a very soft reading in the fourth 
quarter. 
     ** MNI Washington Bureau: Tel. (202)371-2121 ** 

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