US economic activity rebounds sharply in Q3, real GDP grows 33.1%

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The real gross domestic product (GDP) of the United States grew at an annual rate of 33.1% in the third quarter, the United States Bureau of Economic Analysis’s advance estimate showed Thursday. This reading is better than the market expectation of + 31% and follows the 31.4% contraction recorded in the second quarter.Follow our live coverage of the US GDP report and market response.

Market reaction

With the initial market reaction, the US dollar index edged down from the 13-day high it set at 93.80. At the time of writing, the index was up 0.31% on the day to 93.72. Meanwhile, EUR / USD has rallied slightly in the last few minutes and is currently losing 0.3% to 1.1709.

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The best quarter in history – after the worst. Gross domestic product jumped an annualized rate of 33.1%, higher than expectations. This included a 40.7% increase in personal consumption, a vital component of the economy. Business spending rose more than 23% after falling 27%.

The US dollar index peaked at around 93.80 after the data looks to the ECB.

The US Dollar Index (DXY), which values ​​the greenback against a basket of its main rivals, is holding on to the positive performance, although off daily highs near 93.80.

Key takeaways from the press release

“The increase in real GDP reflects increases in personal consumption expenditure (PCE), private investment in inventories, exports, fixed non-residential investment and fixed residential investment, which were partly offset by lower prices. federal government spending and state and local government spending.

“Imports, which is a subtraction in the calculation of GDP, have increased. ”

“GDP in current dollars grew 38.0%, or $ 1.64 trillion, in the third quarter to reach $ 21.16 trillion. In the second quarter, GDP declined 32.8%, or $ 2.04 trillion. “

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