Details:
- Consumer spending +1.4% vs +1.1% prior
- Consumer spending on durables -0.8% vs -2.8% prior
- GDP final sales+3.3% vs +1.3% prior
- GDP deflator +4.1% vs +5.3% expected
- Core PCE +4.5% vs +4.5% expected
- Exports +14.4% vs +13.8% prior
- Imports -6.9% vs +2.2% prior
- Net trade added 2.77 pp to GDP vs +1.16 pp in Q2
- Inventories cutt GDP by 0.70 pp vs 1.91 pp in Q2
- Full report
The final Atlanta Fed GDPNow tracker was +3.1%.
What stands out for me is the low PCE deflator. We get the PCE report tomorrow and that points to a downside surprise in headline inflation , which is something that could weigh on the dollar and boost risk appetite .