In perhaps another sign of U.S. economic resilience, the nation’s real gross domestic product increased at an annual rate of 4.9% in 2023’s third quarter, according to the “advance” estimate released Oct. 26 by the Bureau of Economic Analysis.
That’s a considerable acceleration from 2Q’s 2.1% increase.
The GDP advance estimate released is based on source data that are incomplete or subject to further revision by the source agency. The “second” estimate for the third quarter — based on more complete data — will be released on Nov. 29.
“The increase in real GDP reflected increases in consumer spending, private inventory investment, exports, state and local government spending, federal government spending and residential fixed investment that were partly offset by a decrease in nonresidential fixed investment,” the Bureau said in a news release. “Imports, which are a subtraction in the calculation of GDP, increased.”
The Bureau elaborated that the increase in consumer spending reflected increases in both services and goods. Compared to the second quarter, the acceleration in real GDP in the third quarter reflected accelerations in consumer spending, private inventory investment and federal government spending and upturns in exports and residential fixed investment. These movements were partly offset by a downturn in nonresidential fixed investment and a deceleration in state and local government spending. Imports turned up.
The third quarter’s current dollar GDP increased 8.5% at an annual rate, dwarfing 2Q’s 3.8% increase.
The price index for gross domestic purchases increased 3.0% in the third quarter, compared with an increase of 1.4% in 2Q. The personal consumption expenditures (PCE) price index increased 2.9%, following 2Q’s 2.5% increase. Excluding food and energy prices, the PCE price index increased 2.4% in 3Q, compared with a 3.7% increase in 2Q.