Breaking: US economy grows by 2.0% in Q3 vs. 2.7% expected

The United States' Real Gross Domestic Product (GDP) expanded at an annual rate of 2.0% in the third quarter of 2021, the first estimate released by the US Bureau of Economic Analysis showed this Thursday. This marked a sharp deceleration from the 6.7% growth recorded in the second quarter and also missed consensus estimates for a reading of 2.7%.

Follow our live coverage of the US GDP report and the market reaction.

Initial Market reaction

The disappointing data did little to provide any meaningful impetus to the US dollar amid firming expectations for an early policy tightening by the Fed. Hence, the focus remains on next week’s FOMC monetary policy meeting.

About US GDP 

The Gross Domestic Product Annualized released by the US Bureau of Economic Analysis shows the monetary value of all the goods, services and structures produced within a country in a given period of time. GDP Annualized is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for equities, while a low reading is negative.