The better-than-expected U.S. economic performance in 2023’s third quarter was apparently even better than previously estimated.
The Bureau of Economic Analysis released its “second” estimate of 3Q real gross domestic product on Nov. 29, showing a GDP growth rate figure of 5.2% — up from the 4.9% issued in the first estimate on Oct. 26.
In 2Q23, real GDP increased 2.1%.
The Bureau noted that the second estimate is based on more complete source data than were available for the advance estimate. It added that the update primarily reflected upward revisions to nonresidential fixed investment and state and local government spending that were partly offset by a downward revision to consumer spending. Imports, which are a subtraction in the calculation of GDP, were revised down.
“The increase in real GDP reflected increases in consumer spending, private inventory investment, exports, state and local government spending, federal government spending, residential fixed investment, and nonresidential fixed investment,” the Bureau stated. “Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected accelerations in consumer spending and private inventory investment and an upturn in exports that were partly offset by a deceleration in nonresidential fixed investment. Imports turned up.”
The second estimate report showed that current-dollar GDP increased 8.9% at an annual rate, or by $581.5 billion, during 3Q to a level of $27.64 trillion. Meanwhile, the price index for gross domestic purchases increased 3.0% during 3Q.