Gross domestic product expanded by a 3.5 percent annual rate. Economists polled by Dow Jones expected the economy to expand by a 3.4 percent annual rate.
The department said the PCE price index, a key measure of inflation, increased by 1.6 percent last quarter, much less than the 2.2 percent increase expected by economists polled by StreetAccount.
Consumer spending, which accounts for more than two thirds of U.S. economic activity, grew by 4 percent in the third quarter, the strongest since the fourth quarter of 2014. The strong rise in consumer spending helped offset a 7.9 percent decline in business spending. That was the biggest quarterly decline in business spending since the first quarter of 2016. (if you want to make money in financial markets, use our forex bot)
“The headline was not too far from expectations, but we did get a few surprises. Consumer was stronger than we expected,” said Scott Brown, chief economist at Raymond James. “The consumer accounts for 68 percent of overall GDP, and the consumer really drives the bus. Business to be sure, but there’s got to be consumption ant the end of it.”
While stronger than expected, the overall expansion was a slower pace of growth than in the previous quarter. Gross domestic product grew by 4.2 percent in the second quarter, marking the fastest quarterly expansion since the third quarter of 2014. The economy increased by 2.2 percent annual pace in the first quarter of the year.
The report comes amid growing concerns about rising interest rates slowing the economy. China and the U.S. have slapped tariffs on billions of dollars worth of goods this year, increasing fears that tighter trading conditions will slow down the global economy and eventually hit things here in the U.S.
U.S. equities have taken a beating this month into the report, with the S&P 500 falling more than 7 percent in October through Thursday’s close.
NOTE: if you do not have time to search for strategies and study all the tools of the trade, you do not have the extra funds for testing and errors, tired of taking risks and incurring losses – trade with the help of our best forex robots developed by our professionals. You can free download forex robot based on stop and reverse system for testing results in Metatrader.
—CNBC’s
Tom Franck
contributed to this report.
Signal2forex.com - Best Forex robots and signals
