US: Upside surprise from Q3 GDP numbers – ANZ

Analysts at ANZ point out that the US Q3 advanced GDP was stronger than expected at 3.0% saar (mkt: 2.6%; last: 3.1%).

Key Quotes

“The economy is running above the Fed’s estimate of trend growth (1.8%) and appears to be accelerating, consistent with a Fed rate hike in December. Private consumption rose 2.4% and equipment investment rose 8.6% saar. Spending on personal goods rose 4.2% saar, private domestic investment rose 6.0%, exports rose 2.3%, and non-defence federal spending rose 2.3%. Spending on private services dipped to 1.5%, but that should prove temporary.”