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- The second estimate of third-quarter gross domestic product showed the US economy grew at a 3.3% annualized rate.
- This was the strongest growth since Q3 2014.
- Wednesday’s reading was above President Donald Trump’s 3% target.
A second estimate of third-quarter gross domestic product on Wednesday showed that the US economy grew at a 3.3% annualized rate, the strongest since Q3 2014. Revisions to nonresidential fixed investment, state and local government spending, and private inventory investment provided a boost, the Commerce Department said.
Wednesday’s reading was above the 3.2% growth that Wall Street economists surveyed by Bloomberg were expecting and an improvement from October’s advance reading of 3%.
The US economy has registered growth of at least 3%, President Donald Trump’s stated target, in each of the past two quarters. Following GDP growth of just 1.2% in the first quarter, the economy would need to continue growing at or near this pace to hit Trump’s mark on an annual basis for this year.
Wednesday’s estimate will be revised one more time this year.
The data is likely to keep the Federal Reserve on track to raise interest rates at its December meeting. Ahead of the report, there was a 95.9% chance a rate hike would happen at the December meeting, according to Bloomberg’s world interest rate probability data.
“After a good third-quarter, the survey and early monthly evidence point to another decent gain in GDP in the fourth quarter of between 2.5% and 3.0% annualised,” Paul Ashworth, the chief US economist at Capital Economics, wrote in a note.
Following the data, US Treasury yields are climbing, with the 10-year yield up 4 basis points near 2.37%. The US dollar is also ticking higher, up 0.12% at 93.38 versus a basket of its peers.