December 24, 2019
Third quarter real gross domestic product (GDP) increased at an annual rate of 2.1% for the third quarter of 2019. For the second quarter of 2019, real GDP had a 2.0% growth according to the third estimate released by the Bureau of Economic Analysis.
The upward movement in real GDP for the third quarter reflected positive contributions from personal consumption expenditures (PCE), federal government spending, residential fixed investment, state and local government spending, and exports. This movement was partly offset by a negative contribution from nonresidential fixed investment and private inventory investment. Moreover, imports increased.
The acceleration in the real GDP growth in the third quarter reflected a smaller decrease in private inventory investment and upturns in exports and residential fixed investment. These movements were partly tempered by slower growth in PCE, federal government spending, and state and local government spending, and a larger decline in non-residential fixed investment.
“Current‑dollar GDP increased 3.8 percent, or $202.3 billion, in the third quarter to a level of $21.54 trillion. In the second quarter, GDP increased 4.7 percent, or $241.4 billion.”
In the third quarter, the index for gross domestic purchases price index went up 1.4% when compared to rising 2.2% in the second quarter. In addition, the PCE price index rose 1.5% relative to an increase of 2.4%. With the exception of the food and energy prices, the PCE price index climbed 2.1% versus an increase of 1.9%.
Disclaimer: Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
