InstaForex

November 25, 2021

Market Confidence Recovering? This U.S. GDP Data Gives a Clearer Indication!

 U.S. economic growth in the third quarter was revised slightly higher than the original reading. This was driven by stronger personal spending than previously estimated.


Inflation -adjusted gross domestic product increased at an annual rate of 2.1% in the third quarter from 2% previously reported. Consumer spending, which accounts for the bulk of the economy, rose 1.7%.


Inventory added more than 2.1 percentage points to overall growth during the quarter. The median GDP estimate in the Bloomberg survey expects a higher revision to 2.2%.



A report released by the Commerce Department recently also underlined that the surge in Covid-19 infections, supply shortages and labor constraints caused a sharp slowdown in personal consumption for the third quarter. The latest data, including stronger -than -expected October retail sales, suggests a rebound in the last three months of the year.


However, rising prices and falling in consumer sentiment continue to threaten and constrain household spending and impact the supply chain.


The report also includes the first reading of business revenue for the period. Corporate profit before tax increased 4.3% per annum from the previous quarter and increased nearly 21% from the previous year.