U.S. GDP likely to rise in Q3 on stronger momentum from personal consumption, services

The gross domestic product (GDP) of the United States is expected to have risen during the third quarter of this year, following strong momentum from personal consumption as well as services sector. Also, the country’s outbound shipments showed a solid performance during the period, thus contributing to the firm economic growth.

The final 3Q16 Commerce Department GDP scheduled to be released on December 22 at 13:30GMT, is expected to register an overall increase of +3.3 percent, compared to the +1.4 percent observed during the previous quarter.

Overall, support is largely seen from personal consumption, contributing a +1.89% increase to the overall measure, from +2.88 percent seen in 2Q16), gross private domestic investment +0.34 percent from -1.34 percent seen in 2Q16, bolstered by inventories at +0.49 percent.

Net exports is likely to have contributed a +0.87 percent increase to the overall measure versus the +0.18 percent rise seen in 2Q16 and government, which contributed +0.05 percent to the overall measure, following the -0.30 percent decrease seen in 2Q16.

In terms of prices, the GDP price index is seen to have increased +1.45 percent in 3Q16, down from the +2.3 percent increase recorded in 2Q16. Meanwhile, the core PCE measure came in around +1.7 percent, versus the +1.8 percent increase seen in 2Q16.

Meanwhile, the dollar index traded at 102.87, down -0.15 percent, while at 9:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 30.33 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex