US DATA
The second release for real GDP growth saw growth almost completely unrevised at 2.83% annualized in Q3 vs 2.82% in the advan release. That's another solid reading after the 3.0% in Q2, but domestic demand continues to contribute by a greater extent than was the case in Q2.
- The component revisions saw private consumption a little softer than expected at 3.5% (initial and cons 3.7%) but that’s still a further acceleration from the 2.8% in Q2 for its fastest since 1Q23.
- This downward revision trimmed the consumption contribution by -0.09pps to a still heavy 2.37pp, with a partial offset from stronger than first thought non-residential investment.
- Changes in inventories provided the offsetting slightly larger boost but it doesn’t change the picture from a large sequential drag on the quarter from inventories after they swung higher back in Q2.
- Note the core PCE downward revision from 2.2% to 2.1% was heavily exaggerated by rounding, as it only shifted from 2.156% to 2.146% as of today (Q/Q annualized) after the 2.79% in Q2.
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