The United States’ Gross Domestic Product (GDP) is expected to have expanded at an annualised rate of 2.8% in the third quarter, according to the US Bureau of Economic Analysis’ initial estimate released on Wednesday. This growth rate came in short of the market forecast of 3% and follows a 3.0% expansion in the second quarter.
The report further revealed that the Gross Domestic Product Price Index increased by 1.8% in the July-September period, down from the 2.5% increase recorded in the previous quarter. Meanwhile, the core Personal Consumption Expenditures Price Index rose by 2.2% on a quarterly basis, lower than the 2.8% growth recorded in the second quarter but exceeding’ forecasts of 2.1% gain.
Market reaction
The Greenback regains some balance and lifts the US Dollar Index (DXY) to daily highs around 104.40 in the wake of the release amidst further gains in the short end and the belly of the yield curve.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.05% | 0.45% | 0.00% | 0.10% | -0.14% | -0.02% | 0.18% | |
| EUR | -0.05% | 0.40% | -0.02% | 0.06% | -0.19% | -0.06% | 0.13% | |
| GBP | -0.45% | -0.40% | -0.42% | -0.34% | -0.59% | -0.44% | -0.24% | |
| JPY | 0.00% | 0.02% | 0.42% | 0.08% | -0.15% | -0.04% | 0.18% | |
| CAD | -0.10% | -0.06% | 0.34% | -0.08% | -0.24% | -0.12% | 0.10% | |
| AUD | 0.14% | 0.19% | 0.59% | 0.15% | 0.24% | 0.13% | 0.33% | |
| NZD | 0.02% | 0.06% | 0.44% | 0.04% | 0.12% | -0.13% | 0.21% | |
| CHF | -0.18% | -0.13% | 0.24% | -0.18% | -0.10% | -0.33% | -0.21% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
This section below was published as a preview of the US Gross Domestic Product data at 07:00 GMT.
- The United States Gross Domestic Product is expected to grow at an annualised rate of 3.0% in Q3.
- The US economy continues to outperform its G10 peers.
- Investors anticipate the Federal Reserve will reduce interest rates by 25 bps in November.
The US Bureau of Economic Analysis (BEA) is scheduled to release the preliminary estimate of the US Gross Domestic Product (GDP) for the July-September quarter on Wednesday. Analysts anticipate that the report will indicate an annualised economic growth rate of 3.0%, matching the expansion recorded in the previous quarter.
Unveiling US economic growth: GDP forecast insights
This Wednesday, the US Bureau of Economic Analysis (BEA) is set to release the first estimate of the Gross Domestic Product (GDP) for the third quarter (July-September) at 12:30 GMT. Initial projections point to an annualised economic growth rate of 3.0%, in line with the expansion seen in the previous period and indicating a robust pace for the domestic economy, which continues to outpace its G10 counterparts.
The updated Summary of Economic Projections at the Federal Reserve’s (Fed) September meeting revealed several changes from June. The Fed’s median forecast for real GDP growth remained mostly steady at 2.0% for 2024, 2025 and 2026, and 1.8% for the long term.
The Fed also announced that it had raised the median unemployment rate projections to 4.4% for both 2024 and 2025, 4.3% for 2026 and 4.2% in the long run, up from the previous estimates of 4.0%, 4.2%, 4.1% and 4.2%, respectively.
Regarding inflation, the Fed reported that the median estimate for the core Personal Consumption Expenditures (PCE) price index was revised down to 2.6% for 2024, 2.2% for 2025 and 2.0% for 2026,from earlier projections of 2.8%, 2.3% and 2.0%.
The latest GDPNow forecast from the Federal Reserve Bank of Atlanta, released on Friday, projects that the US economy expanded at an annual rate of 3.3% in the third quarter.
Market observers will be paying close attention to the GDP Price Index, which tracks changes in the prices of goods and services produced domestically, including exports but excluding imports. This index provides a clear view of how inflation is affecting GDP. For the third quarter, the GDP Price Index is expected to increase by 2.7%, up from the 2.5% rise seen in the second quarter.
Along withthe GDP Price Index, the upcoming GDP report will…
Read More: Flash US Q3 GDP rose by 2.8%