US DATA: Q3 real GDP +2.5%, about as expected, showing a pickup that
eliminates recession definition. Final sales were even stronger at
+3.6%, their best since Q4:10, led by consumption. Commerce Dept assumed
a pickup in construction & inventories and trade bal deterioration for
missing data. About 80% of the consumption advance was in services where
health, food, & finance gained. All govt spending fell except for nat’l
defense. GDP price index was +2.5%, and core PCE prices +2.1%.
GDP Components: Q4 Q1 Q2 prelm Q2 rev Q2 final Q3 prel
Real growth +2.3% +0.4% +1.3% +1.0% +1.3% +2.5%
Real final sales +4.2 +0.0 +1.1 +1.2 +1.6 +3.6
PCE +3.6 +2.1 +0.1 +0.4 +0.7 +2.4
Nonres fixed invest +8.7 +2.1 +6.3 +9.9 +10.3 +16.3
Res fixed invest +2.5 +2.4 +3.8 +3.4 +4.2 +2.4
Net Exprt Contrib add 1.37 cut 0.34 add 0.58 add 0.09 add 0.24 add 0.22
Inventory Contrib cut 1.79 add 0.32 add 0.18 cut 0.23 cut 0.28 cut 1.08