Investing.com - Growth of the U.S. economy in the second quarter was revised up more than expected on Thursday, boosting optimism over the health the of the U.S. economy, according to official data.
The third estimate of second quarter growth domestic product (GDP) showed growth of 1.4%, revised up from the previous reading of a 1.1% expansion.
Analysts had expected growth to increase to 1.3%.
However, real consumer spending for the April to June period was unexpectedly revised down to 4.3%, from the prior reading of 4.4%.
Economists had forecast no change.
However, real consumer spending for the April to June period was unexpectedly revised down to 4.3%, from the prior reading of 4.4%.
Economists had forecast no change.
On the inflation front, personal consumption expenditure (PCE) prices were left unchanged at 2.0%, in line with forecasts.
Core PCE prices also went unrevised as expected at 1.8%.
The GDP price index was confirmed at an increase of 2.3%. Analysts had expected no change to the previous reading.
Growth in corporate profits was revised upwards to a decline of 1.9%, from the prior 2.4% fall.
With the data being three months old, market participants were more interested in looking ahead to the publication of the advanced estimate of third quarter GDP to be released on October 28.
Consensus forecasts growth of 2.9% for the July to September period, while the Atlanta Fed estimates 2.8% and the New York Fed expects just 2.3%.
Immediately after the report, which was released simultaneously with weekly jobless claims and August trade data, the dollar pushed higher.
EUR/USD was trading at 1.1212 from around 1.1220 ahead of the publication; GBP/USD was at 1.3008 from 1.3022 earlier; while USD/JPY was at 101.63 from 101.48 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.49, compared to 95.42 ahead of the report.
Meanwhile, U.S. stock futures pointed to a slightly lower open. The Dow futures lost 25 points, or 0.14%, the S&P 500 futures fell 4 points, or 0.17%, while the Nasdaq 100 futures traded down 9 points, or 0.19%.
Elsewhere, in the commodities market, gold futures traded at $1,321.10 a troy ounce, compared to $1,322.50 ahead of the data, while crude oil traded at $47.09 a barrel from $46.96 earlier.