Investing.com - Growth of the U.S. economy in the third quarter (Q3) was unexpectedly revised down on Thursday, dampening optimism over the health the of the U.S. economy, according to official data.
The third estimate of third quarter growth domestic product (GDP) showed growth of 3.2%, revised down from the previous reading of a 3.3% expansion.
That was a negative surprise as analysts had expected growth to remain unchanged from the prior revision.
The American economy grew 3.1% in the second quarter.
Real consumer spending for the July to September period clocked in at a 2.2% rise, compared to the previous increase of 2.3%.
On the inflation front, personal consumption expenditure (PCE) prices held steady at a 1.5% increase missing the forecast for a 1.6%.
Core PCE prices eased to a 1.3% rise, missing expectations for the reading to remain unchanged at 1.4%.
The GDP price index held steady at a 2.1% increase below the forecast for a 2.2% advance.
Market participants are looking ahead to the publication of the advanced estimate of fourth quarter GDP to be released on January 26.
After the report, which was released simultaneously with weekly jobless claims and the Philadelphia Fed manufacturing index for December, EUR/USD was trading at 1.1861 from around 1.1856 ahead of the publication; GBP/USD was at 1.3351 from 1.3357 earlier; while USD/JPY was at 113.40 from 113.52 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 92.97, compared to 93.04 ahead of the report.
Meanwhile, U.S. stock futures pointed to a higher open. The Dow futures gained 62 points, or 0.25%, the S&P 500 futures advanced 8 points, or 0.28%, while the Nasdaq 100 futures traded up 11 points, or 0.16%.
Elsewhere, in the commodities market, gold futures traded at $1,268.70 a troy ounce, compared to $1,267.20 ahead of the data, while crude oil traded at $57.80 a barrel from $57.80 earlier.