Tuesday, December 23, 2014

Q3 GDP Revised Up to 5.0%

by Bill McBride on 12/23/2014 08:34:00 AM

From the BEA: Gross Domestic Product: Third Quarter 2014 (Third Estimate)

Real gross domestic product -- the value of the production of goods and services in the United States, adjusted for price changes -- increased at an annual rate of 5.0 percent in the third quarter of 2014, according to the "third" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 4.6 percent.

The GDP estimate released today is based on more complete source data than were available for the "second" estimate issued last month. In the second estimate, the increase in real GDP was 3.9 percent. With the third estimate for the third quarter, both personal consumption expenditures (PCE) and nonresidential fixed investment increased more than previously estimated
Here is a Comparison of Third and Second Estimates.  PCE was revised up from 2.2% to 3.2%, and private investment was revised up.   A very strong report.