Forex Marketz Daily Forex News – Fully Markets Update
Just released, and about 12 hours too early, US Consumer spending rose in November by 0.3 percent. This data was released by the US Bureau of Economic Analysis (BEA) overnight.
The report details that personal consumption expenditures was up to $12.43 trillion last month. This number was at $12.39 trillion in October. In a statement released shortly after this report hit the wires, the BEA said, “there has been an inadvertent release of some of BEA’s personal consumption expenditure data for November as well as for previous months.”
The release is part of the personal income and outlays report schedule for release today at 8:30 ET. Furthermore, the “BEA will take steps to ensure that this does not happen again and will take all appropriate action to safeguard economic data.”
US Economy Grows at a Good Clip
Also released overnight was the US Q3 gross domestic product (GDP). The release showed that the economy grew at a steady clip as consumer and business spending continued to offset a glut in business inventories. This release shows the recovery has a nice foundation, despite recent weaker than expected economic reports.
According to the Commerce Department, the GDP grew at two percent, this was below the 2.1 percent growth from las month. This is the third estimate Q3 for the world’s largest economy. There has been a sharp decline from the 3.9 percent growth rate seen in the second quarter but recovery remains focused on the long-run potential.
Last week, the Federal Reserve Board (FRB) raised its benchmark interest rate by 25 basis points to 0.25 to 0.50 percent. This was the first hike in a decade and the much anticipated liftoff towards normalization of monetary policy. The rate hike was the FRB’s vote of confidence in the economic recovery. This recovery has been stunted by spending cuts in the energy sector and a strong Dollar.
Economists had expected the GDP number for Q3 to come out at 1.9 percent growth rate. From and income side the GDP grew at 2.7 percent and below the 3.1 percent reported last month. This is thanks to a downward revision in corporate profits.
