Real GDP Slows Down in Q3
According to the third estimate released by the Bureau of Economic Analysis, real gross domestic product increased at an annual rate for the third quarter that was less than in the second quarter.
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According to the third estimate released by the Bureau of Economic Analysis, real gross domestic product (GDP) increased at an annual rate of 3.4% for the third quarter. In the second quarter, real GDP increased by 4.2%.
The latest GDP estimate is based on more complete source data than were available for the estimate issued in November. In that second estimate, the increase in real GDP was 3.5%. With the final estimate for the third quarter, personal consumption expenditures (PCE) and exports were revised down, and private inventory investment was revised up, but the general picture of economic growth remains the same.
The deceleration in real GDP growth in the third quarter primarily reflected a downturn in exports and declines in nonresidential fixed investment and in PCE. Imports increased in the third quarter after decreasing in the second. These movements were partly offset by an upturn in private inventory investment.
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Current-dollar GDP increased 4.9%, or $246.3 billion, in the third quarter to $20.66 trillion. In the second quarter, current-dollar GDP increased by 7.6%, or $370.9 billion.
The price index for gross domestic purchases increased 1.8% in the third quarter, compared with an increase of 2.4% in the second quarter. The PCE price index increased 1.6%, compared with an increase of 2.0%. Excluding food and energy prices, the PCE price index increased 1.6%, compared with an increase of 2.1%.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
