GDP Grows at 3.4% Pace, Slower Than Pro­jected

The Bond Buyer - - Market News -

Third quar­ter gross do­mes­tic prod­uct growth was re­vised down to a 3.4% gain from the 3.5% gain in the pre­vi­ous es­ti­mate, data re­leased Fri­day by the Bureau of Eco­nomic Anal­y­sis showed.

At the same time, the price pic­ture was re­vised only mod­estly from the pre­vi­ous es­ti­mate. The core PCE price in­dex was re­vised up to 1.6% from 1.5%, but the year/ year rate is still at 2.0%, up from 1.9% in the pre­vi­ous quar­ter.

The slight down­ward re­vi­sion to GDP was driven by down­ward re­vi­sions to res­i­den­tial in­vest­ment and PCE, and a wider net ex­port gap, but was par­tially off­set by an up­ward re­vi­sion in pri­vate in­ven­tory in­vest­ment.

PCE growth was re­vised down to a 3.5% pace from 3.6% in the pre­vi­ous es­ti­mate, while the net ex­port gap now stands at $949.7 bil­lion, wider than $945.8 bil­lion gap in the pre­vi­ous es­ti­mate.

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