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U.S. economy grows 1.5% in Q3, below expectations for 1.6%

Published 10/29/2015, 08:32 AM
© Reuters.  U.S. economy grows 1.5% in third quarter
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Investing.com - The U.S. economy grew less than expected in the third quarter, dampening optimism over the health of the economy and adding to uncertainty over the possibility of a December rate hike, official preliminary data showed on Thursday.

In a report, the Commerce Department said gross domestic product grew at a seasonally adjusted annual rate of 1.5% in the three months ended September 30, missing expectations for growth of 1.6%. The U.S. economy grew 3.9% in the preceding quarter.

The data showed personal consumption rose 3.2% in the third quarter, below expectations for a 3.3% gain, and compared to a 3.6% increase in the preceding quarter.

Consumer spending typically accounts for nearly 70% of U.S. economic growth.

The GDP price index rose 1.2% in the third quarter, compared to expectations for a 1.5% increase and down from 2.1% in the previous quarter.

EUR/USD was trading at 1.0970 from around 1.0960 ahead of the release of the data, GBP/USD was at 1.5271 from 1.5263 earlier, while USD/JPY was at 120.84 from 120.94 earlier.

The US dollar index, which tracks the greenback against a basket of six major rivals, was at 97.41, compared to 97.50 ahead of the report.

Meanwhile, U.S. stock futures pointed to a lower open. The Dow futures indicated a loss of 0.4% at the open, the S&P 500 futures pointed to a drop of 0.45%, while Nasdaq 100 futures declined 0.6%.

Elsewhere, in the commodities market, gold futures traded at $1,156.90 a troy ounce, compared to $1,154.60 ahead of the data, while crude oil traded at $45.45 a barrel from $45.41 earlier.

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