FX.co ★ US economic growth unrevised at 2.1% in Q3

The American economy is strikingly stable. It is able to keep things balanced in times of crisis. Despite some slowdown, the US economy is heading into the new year at a steady pace. This year, the estimate of GDP growth has been unrevised, confirming economists' expectations.

The US Commerce Department left its third-quarter GDP growth forecast unchanged at 2.1% on an annual basis. Earlier, in the second quarter of 2019, the US economy added 2%.

According to the agency, consumer spending was stronger than previously reported. Growth was raised to 3.2% year-on-year from 2.9%. The change to the consumer-spending data reflected increased spending on personal care and financial services. Growth in spending, which accounts for two-thirds of the US economic activity, added 2.12 percentage points to the gross domestic product.

In the period from July to September, adjusted pre-tax corporate profits soared 3.8% from the previous quarter. Government spending growth was raised to 1.7% from a 1.6% gain previously estimated by the US Commerce Department.

Exports for the reporting period were also revised upwards to 1% from its earlier estimate of 0.9%. At the same time, cross border sales increased by 2.1%, while services exports dipped by 1.3%. Imports rose by 1.8% instead of 1.5% previously reported by the agency.

Private investment in the United States decreased by 1%, while experts previously expected a reduction of 0.1%. The core PCE price index (Personal Consumption Expenditures Excluding Food and Energy) remained at the same level. The index is usually closely watched by the Federal Reserve as it assesses inflation risks. In the third quarter of 2019, the core PCE price index was left unrevised at 2.1%.