US grows at 3.5% annualised in Q3

Data released overnight in the US showed GDP growth at an annualised 3.5% in the September quarter (this compares with +4.6% ann in Q2 and -2.1% ann in Q1). Over the course of the past 12 months the US economy has expanded a real 2.3%. The result was somewhat stronger than the consensus market expectations.

Growth came from household spending (the largest component of GDP) which was up 1.8% ann, business investment +5.5% ann and government spending +4.6% ann. The housing sector slowed from the previous quarter +1.8% ann (after a 8.8% annualised growth in Q2).

The US$ rallied strongly on the data (up over a cent against the A$) but has since lost almost half of those gains. The A$ is currently trading around US$0.884.

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