U.S. Economy Heads Into a Recession as GDP Contracts 0.3%

Daily Forex Fundamentals | Written by DailyFX | Oct 30 08 12:52 GMT |

The advanced GDP reading for the U.S. showed that the economy contracted 0.3% in the third quarter to record its biggest quarterly decline since 2001. The growth figure crossed the wires slightly better than the -0.5% estimate projected by economists, but the breakdown of the report suggests that conditions may only get worse as exports cooled to 5.9% from 12.3% in the second quarter. In addition, personal consumption slipped to -3.1% from 1.2% in the previous quarter as durable goods plunged 14.1%, followed by a 6.4% decline in non-durable goods. The data suggests that the world’s largest economy is headed for a recession, which could force the Fed to lower the benchmark interest below the 1.00% level for the first time in history. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.