U.S. GDP positive revision spurred by inventory adjustment

The U.S. economy grew faster than expected in Q3 as GDP beat estimates to grow at a 2.1 percent annualized rate. The upward revision was primarily from the big reduction in inventory accumulation to a smaller -.60, from -1.40. This GDP report revealed that the U.S. consumer continues to drive growth due to low energy prices and solid job security, U.S. household consumption expanded at a 3 percent pace, and disposable personal income grew at a 3.9 percent pace. But Company inventories remained heightened relative to sales due to weak demand and a strong dollar.

"The elevated inventory levels show that orders and production need to slow for 2016 which will put pressure on Q4. Today's report also highlighted corporate profits which fell 1.1 percent in Q3, following a 3.5 percent gain in Q2, and set a recent low for earnings down 4.7 percent year-over-year. Meanwhile, geopolitical events dominate as Turkey shoots down a Russian warplane on Syria's border", says Voya Global.