US GDP KEY POINTS:
US GDP data released for Q3 2023 and revised higher at 5.2%, an uptick from the initial estimate of 4.9% and higher than the forecasted 5%. Based on more complete source data, nonresidential fixed investment and state and local government spending contributed to the upward revisions, partially offset by a downward revision in consumer spending. The new estimates also showed a rise in residential investment and faster-than-expected private inventories. However, government spending saw a faster increase, and consumer spending saw a growth slightly below the initial estimate, indicating the biggest gain since Q4 2021. Disposable personal income also increased by 2.9% and real disposable personal income by 0.1%, marking a considerable upward revision to the previous estimate. The dollar index remained relatively unchanged post-release. Gold prices also spiked as markets priced in more rate cuts from the Fed. Nevertheless, they touched the $2000 mark, indicating a potentially meaningful step towards further upside. However, a failure to break above the $2050 mark could prompt a retracement. The potential ouster of basic economic growth expectation indicated by Fed policymakers might be a sign of an impending struggle to taper the US economy from the end of 2023 to the start of 2024, and the fight against inflation. On the other hand, the Federal Reserve’s dovish stance and continued optimism for aggressive 2024 rate cuts might diminish the impact on the US dollar index, which has slightly gained, observed to pressure for a rebound from the 4-month lows.
HTML Tags:
“`html
US GDP data released for Q3 2023 and revised higher at 5.2%, an uptick from the initial estimate of 4.9% and higher than the forecasted 5%. Based on more complete source data, nonresidential fixed investment and state and local government spending contributed to the upward revisions, partially offset by a downward revision in consumer spending. The new estimates also showed a rise in residential investment and faster-than-expected private inventories. However, government …………………………………….
(more content)
…………………………. slightly gained, observed to pressure for a rebound from the 4-month lows.
“`
**Disclaimer: The above content is a rewrite of the original content provided for summarization or educational purposes.**
