U.S GDP Q2 2012 Revised Down to 1.3%

The bureau of economic analysis published today September 27th its third and final estimate of the growth rate of the U.S. Gross Domestic Product for the second quarter of 2012. According to the recent update U.S output of goods and services growth rate was revised down to an annual growth rate of 1.3% in Q2 2012.

According to the recent update, the growth rate of the real U.S GDP during the second quarter of 2012 (third and last estimate) was revised down from 1.7% in annual growth in the second estimate to 1.3% in the third estimate. This is figure is a lower than what some analysts had expected. In the first quarter of 2012 the GDP expanded by 2%; the real U.S GDP for Q4 2011, by 3%; thus the growth rate in the Q2 2012 was much lower than  the growth rate of the GDP in the past couple of quarters but was still higher than the growth during the parallel quarter in 2011.

This means the U.S output didn’t expand as much as hoped and slowed down.

The chart below shows the developments of the real U.S. GDP (in annual rates) growth rate between the years 2009 and 2012.  It shows the steady fall in the GDP growth rate in the past three quarters.

U.S. GDP update 2009-2012 US GDP second Q2012 (percent) September 2012

This lower than expected growth rate should have pull down the prices of commodities but this news also raises the chances that the Fed will intervene again  in the financial markets, which could pull up precious metals and other commodities rates.

Currently, the European stock markets are slightly falling along with other major commodities prices: major energy commodities prices including crude oil prices are currently rising; gold and silver are also trading up; the U.S dollar is slightly depreciating against major currencies including Euro, Japanese Yen and Aussie dollar.

Nymex (WTI) crude oil price, short term future (October 2012 delivery) is traded up by 1.34%, at $91.19 per barrel as of 13:52*.

Gold price, short term futures (October 2012 delivery) is traded at $1,766 per t oz. a $12.5 increase as of 13:52*.

Euros to USD is currently traded slightly up at 1.2888 as of 13:52*.

(* GMT)

For more on this subject: