How much did the US GDP rise in the third quarter?
The nation’s real gross domestic product increased at an estimated annual rate of 3.5 percent in the third quarter, the Bureau of Economic Analysis said in an advance estimate Thursday. In the second quarter, real GDP — the output of goods and services produced by labor and property in the United States — decreased 0.7 percent, the BEA said in a release. The BEA said its third-quarter advance estimate is based on source data that are incomplete or subject to revision. The agency will release another third-quarter estimate, based on more complete data, on Nov. 24. The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures, exports, private inventory investment, federal government spending and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased, the release said. The quarter also saw a smaller decrease in nonresidential fixed investment, partly offset by an upturn in impor
It’s good news that investors have been waiting awhile for: The U.S. economy grew for the first time in a year, rising 3.5 percent in the third quarter, the U.S. Commerce Department announced Thursday. It was the strongest growth rate in two years and was led by consumer spending, a slower reduction in inventories, a stabilizing housing market, and large increases in government spending connected to the federal stimulus package. A Bloomberg survey had predicted a Q3 GDP increase of 3.0 percent. Prior to Q3, the economy had contracted for four consecutive quarters, including a 0.7 percent decline in Q2 and a 6.4 percent decline in Q1. The U.S government revises its GDP estimates for previous quarters as it receives more information. Over the past 12 months, the U.S. economy contracted 2.3 percent. In 2008, the world’s largest economy grew a scant 1.1 percent — well below capacity. Meanwhile, core consumer prices — an inflation barometer closely monitored by the U.S. Federal Reserve —
The nation’s real gross domestic product increased at an estimated annual rate of 3.5 percent in the third quarter, the Bureau of Economic Analysis said in an advance estimate Thursday. In the second quarter, real GDP — the output of goods and services produced by labor and property in the United States — decreased 0.7 percent, the BEA said in a release. The BEA said its third-quarter advance estimate is based on source data that are incomplete or subject to revision. The agency will release another third-quarter estimate, based on more complete data, on Nov. 24. The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures, exports, private inventory investment, federal government spending and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased, the release said. Sources:
