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Friday, October 27, 2017

BEA: Real GDP increased at 3.0% Annualized Rate in Q3

by Calculated Risk on 10/27/2017 08:33:00 AM

From the BEA: Gross Domestic Product: Third Quarter 2017 (Advance Estimate)

Real gross domestic product (GDP) increased at an annual rate of 3.0 percent in the third quarter of 2017, according to the "advance" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.1 percent.
The increase in real GDP in the third quarter reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, nonresidential fixed investment, exports, and federal government spending. These increases were partly offset by negative contributions from residential fixed investment and state and local government spending. Imports, which are a subtraction in the calculation of GDP, decreased .

The deceleration in real GDP growth in the third quarter primarily reflected decelerations in PCE, in nonresidential fixed investment, and in exports that were partly offset by an acceleration in private inventory investment and a downturn in imports.
emphasis added
The advance Q3 GDP report, with 3.0% annualized growth, was slightly above expectations.

Personal consumption expenditures (PCE) increased at 2.4% annualized rate in Q3, down from 3.3% in Q2.   Residential investment (RI) decreased at a 6.0% pace. Equipment investment increased at a 8.6% annualized rate, and investment in non-residential structures decreased at a 5.2% pace.

I'll have more later ...