(Kitco News) - The U.S. economy is showing surprising strength as growth increased more than expected between July and September.
The Bureau of Economic Analysis announced the final reading of the third-quarter Gross Domestic Product on Thursday, saying the economy grew 3.1% in the last three months, up from 3.0% in the second quarter. The data was better than economists' expectations, as consensus forecasts were looking for an unchanged reading from the preliminary at 2.8%.
“Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected accelerations in exports, consumer spending, and federal government spending,” the report said. “These movements were partly offset by a downturn in private inventory investment and a larger decrease in residential fixed investment. Imports accelerated.”
The gold market was testing the $2,600 support level prior to the 8:30 a.m. EST release, and the yellow metal continued to do so in the minutes afterward. Spot gold last traded at $2,600.55 per ounce for a gain of 0.58% on the session.
Looking at some of the components of the report, consumer spending increased 3.7% in the third quarter, the same as the preliminary reading and up from 2.8% in Q2.
The report also noted that inflation ticked slightly higher. The Core Personal Consumption Expenditures (PCE) Index for the quarter rose 2.2%, while economists were expecting to see a 2.1% increase, while the final GDP Price Index increased 1.9% quarter over quarter.
