The third estimate of the nation’s gross domestic product was released today, showing an even stronger third quarter than experts predicted in their last estimate, increasing to the fastest quarterly growth in two years.
According to the third and final estimate before annual revisions in July, real GDP increased by 3.5% in the third quarter, up significantly from the second quarter’s increase of 1.4%, according to the report from the U.S. Bureau of Economic Analysis.
The GDP estimate released today is based on more complete source data than were available for the second estimate issued last month, which said GDP increased by 3.2%.
With this third estimate for the quarter, nonresidential fixed investment, personal consumption expenditures and state and local government spending increased more than previously estimated, however the general picture of economic growth remains the same.
Click to Enlarge
(Source: U.S. Bureau of Economic Analysis)
Real gross domestic income increased by 4.8% in the third quarter, up from the increase of just 0.7% in the second quarter. The previous estimate stated real GDI increased by 5.2%.
Here are other updates to the previous estimate:
Current-dollar GDP: Increased by 5%, up from the previous estimate’s 4.6%.
Average of real GDI and real GDP: Increased by 4.1%, down slightly from the previous estimate’s 4.2%.
Gross domestic purchases price index: Remained the same as the last estimate at an increase of 1.5%.
Personal consumption expenditures: Increased by 1.5%, up slightly from last estimate’s 1.4%.
The strong GDP supports the Federal Reserve’s current direction which, after raising rates in December, hinted that it could raise them several more times next year.