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.
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%.