|JPY||National Core CPI (YoY)|
|JPY||Tokyo Core CPI (YoY)|
|AUD||PPI (QoQ) (Q3)|
|JPY||BoJ Press Conference|
|EUR||German Retail Sales|
|EUR||Italian CPI (MoM)|
|EUR||CPI (YoY) (Oct)|
|CAD||GDP (MoM) (Aug)|
|USD||Chicago PMI (Oct)|
United States GDP Beats Expectations
October 31, 2014
Much to the markets surprise Janet Yellen bypassed mention of monetary policy or economic outlook in her speech today. Traders were expecting her to mention yesterday’s FOMC statement. More importantly was the surprise print of GDP which came in at 3.5% against expectations of 3.0% which supports the FOMC statement yesterday and the possibility of an interest rate increase in mid-2015. The United States GDP grew at a 3.5 percent annualized rate between July and September; the government said Thursday morning, providing fresh hope that a stubbornly slow-footed recovery could be gaining some momentum.
The latest gross domestic product figure, released by the Commerce Department, slightly exceeded analyst predictions and caps America’s strongest six-month period of expansion since 2003.
U.S. officials emphasized that the latest GDP figure, a measure of all goods and services produced, outpaced those of other advanced countries and reflected the country’s improving labor market and growing oil and gas supply.
The second quarter’s 4.6 percent GDP jump was a rebound from a 2.1 percent slump in the first quarter that partly reflected a harsh winter. Consumer spending, which accounts for almost 70 percent of the economy, climbed at a 1.8 percent pace last quarter after growing at a 2.5 percent rate in the previous three months, today’s report showed. The gain compared with a 1.9 percent median forecast in the Bloomberg survey. Purchases added 1.2 percentage points to GDP.
The growth in real GDP beat consensus expectations of 3% gains and was due to positive contributions from personal consumption expenditure, exports, nonresidential fixed investment, and government spending at all levels. Imports, which negatively impact GDP, increased. Gains were also partially offset but a decrease in private inventory investments. The slowdown in growth compared to the second quarter was due to deceleration in most measures other than federal government spending which surged to 4.6% due to a large increase in defense spending.