U.S. real GDP grew at a 3.4% annualized pace in the third quarter as demand advanced and inflation cooled, while exports fell, the U.S. Bureau of Economic Analysis (BEA) said Thursday.
Growth accelerated from an annualized 2.2% in the second quarter. BEA's third estimate had raised that figure by 0.7 percentage point, as noted in EconoTimes' earlier report on the revision. The 3.4% rate equates to a 0.8% increase over the quarter itself.
A measure called real final sales to private domestic purchasers, which combines consumer spending with gross private fixed investment, rose at a 4.9% annual rate, up from 4.6% in the second quarter. Investment growth primarily reflected private inventory investment and equipment. Information-processing equipment, mainly computers and peripherals, led the increase among equipment categories.
Household spending increased across goods and services. Health care and food services and accommodations led gains in services, while prescription drugs were a main contributor among goods. Federal spending accounted for more than the increase in government spending, with nondefense consumption expenditures leading.
Exports fell, mainly because of lower goods exports led by petroleum and related products. Imports rose, with capital goods excluding automotive contributing most. The personal consumption expenditures (PCE) price index climbed at a 2.1% annual rate, down from 5.0% in the second quarter; excluding food and energy, it rose 2.5%, compared with 3.3%.
BEA's advance estimate is preliminary. The second estimate of third-quarter GDP, which will include corporate profits, is scheduled for Nov. 25 at 8:30 a.m. EST.
