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%.
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