The final estimate for the third quarter decreased gross domestic product slightly from the previous estimate, according to according to the U.S. Bureau of Economic Analysis.
GDP increased at an annual rate of 3.2% in the third quarter this year, according to the third and final estimate from BEA. This is down from the second estimate, which placed GDP at 3.3%, but up from the second quarter’s 3.1%.
Today’s GDP estimate is based on more complete source data than was available for the advance estimate issued last month.
The chart below shows despite a slow start to this year, the second and third quarters have shown solid growth. The fourth quarter’s and annual growth will be released at the end of January.
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Real gross domestic income increased 2% in the third quarter, down from an increase of 2.3% in the second quarter and down from the second quarter’s estimate of 2.5%. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 2.6% in the third quarter, down from 2.7% in the second quarter.
The increase in real GDP in the third quarter is due, in part, to personal consumption expenditures, private inventory investment, nonresidential fixed investment, exports, federal government spending and state and local government spending and a decrease in imports, which are a subtraction from GDP. However, these were partly offset by a negative contribution from residential fixed investment.
Here are updates to the previous estimate:
Current-dollar GDP: Decreased to 5.3%, down from last estimate’s 5.5%
Average of real GDI and real GDP: Decreased to 2.6%, down from last estimate’s 2.9%
Gross domestic purchases price index: Decreased to 1.7%, down from last estimate’s 1.8%
Personal consumption expenditures: Held steady at 1.5%