Breaking News Instant updates and real-time market news.

09:05
11/29/16
11/29
09:05
11/29/16
09:05

The U.S. Q3 GDP growth boost to 3.2%

The U.S. Q3 GDP growth boost to 3.2% from 2.9% beat estimates thanks to a big service-led boost to consumption and a smaller than expected $5.1 B downward inventory bump that was partly offset by unexpected downward revisions in equipment and intellectual property. Analysts otherwise saw the expected $1.9 B boost in net exports and upward revisions in construction, leaving a Q3 hike in final sales growth to 2.7% from 2.3%. Analysts left our Q4 GDP growth estimate at 1.8%. The downwardly-revised Q3 inventory bounce leaves a modest upturn after the massive GDP inventory downswing that left an enormous $123.9 B inventory plunge from a lofty $114.4 B accumulation rate in Q1 of 2015 to a $9.5 B liquidation rate in Q2. Beyond inventories, the Q3 data depict a quarter mostly lifted by a big export surge that reversed winter weakness. Analysts saw firm real consumption growth but tiny gains for business fixed investment and government purchases, while residential construction posted a second consecutive quarterly drop before a likely weather-led Q4-Q1 bounce.

TODAY'S FREE FLY STORIES

Get Full Fly Access

Breaking market intelligence sent straight to you
Our team of experts analyze every news story and filter out the noise to deliver real-time market moving news.
Up-to-date information on important industry events
Get real-time updates on events that are moving the market—from conferences and calls to syndicate announcements.
News focused on the companies in your portfolio
Create up to 12 portfolios with 150 stocks each, and see how active they are in market news.