Investing.com - The U.S. economy grew less than initially estimated in the third quarter, but still beat expectations, official revised data showed on Tuesday.
In a report, the Commerce Department said gross domestic product grew at a seasonally adjusted annual rate of 2.0% in the three months ended September 30, better than expectations for 1.9%. Preliminary data initially pegged U.S. growth at 2.1% in the third quarter. The U.S. economy grew 3.9% in the second quarter.
The report showed personal consumption rose 3.0% in the third quarter, above forecasts for 2.9% and unchanged from an initial estimate. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
The GDP price index rose 1.3% in the third quarter, matching forecasts and compared to a preliminary reading of 1.3%.
The better than forecast data fueled speculation the U.S. economy is strong enough to warrant further interest rate hikes in 2016.
EUR/USD was trading at 1.0947 from around 1.0953 ahead of the release of the data, GBP/USD was at 1.4867 from 1.4871 earlier, while USD/JPY was at 121.03 from 120.94 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 98.22, compared to 98.18 ahead of the report.
Meanwhile, U.S. stock futures pointed to a modestly higher open. The Dow futures pointed to a gain of 24 points, or 0.14%, at the open, the S&P 500 futures indicated an increase of 4 points, or 0.16%, while the Nasdaq 100 futures tacked on 3 points, or 0.05%.
Elsewhere, in the commodities market, gold futures traded at $1,075.90 a troy ounce, compared to $1,079.70 ahead of the data, while crude oil traded at $35.95 a barrel from $36.09 earlier.