November 27, 2019
The third quarter real gross domestic product (GDP) for the grew at an annual rate of 2.1%, based on the “second” estimate released by the Bureau of Economic Analysis (BEA). The second quarter of 2019 real GDP yielded an increase of 2.0%.
Due to the availability of more complete data, BEA noted, “upward revisions to private inventory investment, nonresidential fixed investment, and personal consumption expenditures (PCE) were partially offset by a downward revision to state and local government spending.”
For the third quarter, the increase in real GDP showcased positive contributions from personal consumption expenditures (PCE), federal government spending, residential investment, private inventory investment, exports, and state and local government spending that were partly tempered by negative contributions from nonresidential fixed investment. On the other hand, imports increased.
The Bureau of Economic Analysis indicated, “the acceleration in real GDP in the third quarter reflected upturns in private inventory investment, exports, and residential fixed investment that were partly offset by decelerations in PCE, federal government spending, and state and local government spending, and a larger decrease in nonresidential fixed investment.”
Real gross domestic income (GDI) rose 2.4% in the third quarter, relative to a 0.9% rise in the second quarter revised estimate. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, rose 2.3% in the third quarter while in the second quarter GDI increased 1.4%.
In the third quarter, a 1.4% increase was observed for the price index for gross domestic purchases, compared with an increase of 2.2% in the second quarter. The PCE price index climbed 1.5%, relative to an increase of 2.4%. Excluding food and energy prices, the PCE price index rose 2.1%, compared with a 1.9% increase.
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