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US Q3 GDP growth revised to 2.7% from 2%

November 30, 2012

The US economy grew faster than previously reported in Q3, data from the the Bureau of Economic Analysis showed yesterday. Gross domestic product grew at a 2.7% annual rate, up from a 2% preliminary estimate. The median estimate of 82 analysts polled by Bloomberg had called for a pace of 2.8%. The acceleration in Q3 growth was mainly driven by a rebound in inventory investment, the Department of Commerce noted. The US economy expanded 1.3% in Q2 (Q1: 2%).

Real personal consumption expenditures increased 1.4% in the three months through the end of September (economist consensus: 1.9%), compared with a rate of 1.5% in Q2. The gain in consumer purchases was the smallest since the second quarter of 2011.

Meanwhile, the Department of Labor reported that initial jobless claims decreased by 23,000 to 393,000 last week (forecast: 390,000), while continuing claims fell by 70,000 to 3.287 m in the week ended 17 November (expected: 3.325 m).

Separately, pending home sales advanced 5.2% on the month in October (median analyst projection: 1%, September: revised to 0.4% from 0.3%), according to statistics released yesterday by the National Association of Realtors.

Personal income and spending data are issued this afternoon at 2.30 pm CET, alongside the latest findings from the ISM Chicago PMI survey (3.45 pm, Bloomberg economist consensus for the November purchasing managers’ index reading: 50.5, previous month: 49.9).