U.S. GDP for the third quarter grew by 2.8%, compared to a previous increase of 3.0%. Analysts had estimated it would rise by 2.9%.
U.S. GDP Price Index for the third quarter increased by 1.8%, down from 2.5% in the previous quarter. Analysts had expected it to rise by 1.9%.
The U.S. PCE Prices for the third quarter rose by 1.5%, compared to a previous increase of 2.5%. The forecast was for a rise of 2.7%.
The U.S. Core PCE Prices for the third quarter went up by 2.20%, lower than the previous increase of 2.80%. The estimate was for a 2.10% increase.
U.S. GDP Sales for the third quarter grew by 3.0%, an increase from the previous quarter’s 1.9%.
Real Consumer Spending in the U.S. for the third quarter rose by 3.7%, compared to a previous increase of 2.8%.
GDP Annualized QoQ Contribution
Consumption: 2.46% (previously 1.9 pp)
Government Spending: 0.85 pp (previously 0.52 pp)
Investment: 0.07% (previously 1.47 pp)
Exports: 0.94% (previously 0.12 pp)
Imports: -1.49% (previously -1.01 pp)
The rise in real GDP was mainly due to higher consumer spending, increased exports, and more federal government spending. Imports, which reduce GDP, also went up.
Consumer spending grew for both goods and services.
In goods, the main contributors were other nondurable items (especially prescription drugs) and motor vehicles and parts.
For services, the largest contributors were health care (particularly outpatient services) and food services and accommodations.
The rise in exports was mostly due to an increase in goods, especially capital goods, excluding automotive products.
Federal government spending increased, driven mainly by defense spending.
The rise in imports was largely because of an increase in goods, particularly capital goods, excluding automotive products.
Compared to the second quarter, the slowdown in real GDP in the third quarter was mainly due to a drop in private inventory investment and a larger decline in residential fixed investment.
These declines were somewhat balanced out by increases in exports, consumer spending, and federal government spending, while imports also increased.
