US data pack for third quarter of 2022 was released at 1:30 pm GMT today. Attention was mostly on GDP revision and it surprised to the upside. Core PCE accelerated slighlty, while spending data came in above expectations.
Data pack for Q3 (third release):
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Open account Try demo Download mobile app Download mobile app• GDP growth (annualized) 3.2%. Second release: 2.9%. Consumption revised sharply higher
• Consumer spending (annualized) 2.3%. Second release: 1.7%
• Core PCE inflation: 4.7% QoQ. Second release 4.6% QoQ
Source: Bloomberg
When it comes to GDP revision, consumer spending rose more than anticipated (2.3% vs 1.7% in the second estimate), as growth in health care and "other" services partially offset a decrease in spending on goods, namely motor vehicles and food and beverages. Also, nonresidential investment jumped at a faster 6.2% (vs 5.1% in the second estimate), boosted by equipment and intellectual property. The biggest positive contribution to growth came from net trade (2.88% vs 2.93% in the second estimate), although exports rose slightly less than reported in the second estimate (14.6% vs 15.3%) while imports were unrevised (-7.3%). On the other hand, residential investment sank more (-27.1% vs -26.8%), led by new single-family construction and brokers' commissions and the drag from private inventories was also revised higher (-1.19% vs -0.97%), according to U.S. Bureau of Economic Analysis
Simultaneously claims data were released:
• Jobless claims: 216k vs 222k expected (211k previously)
• Continuing Jobless Claims: 1672k vs 1683k expected (1671k previously)
Today's data indicate that the US economy is still strong and the labor market remains tight, which raises concerns that the Fed will maintain its aggressive policy. As a result, the dollar strengthens and equities retreat.
Dollar strengthened and EURUSD is moving towards support at 1.0600 Source: xStation5
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