Wednesday, October 30, 2019

BEA: Real GDP increased at 1.9% Annualized Rate in Q3

by Calculated Risk on 10/30/2019 08:34:00 AM

From the BEA: Gross Domestic Product, Third Quarter 2019 (Advance Estimate)

Real gross domestic product (GDP) increased at an annual rate of 1.9 percent in the third quarter of 2019, according to the "advance" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 2.0 percent. ...

The increase in real GDP in the third quarter reflected positive contributions from personal consumption expenditures (PCE), federal government spending, residential fixed investment, state and local government spending, and exports that were partly offset by negative contributions from nonresidential fixed investment and private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.

The deceleration in real GDP in the third quarter reflected decelerations in PCE, federal government spending, and state and local government spending, and a larger decrease in nonresidential fixed investment. These movements were partly offset by a smaller decrease in private inventory investment, and upturns in exports and in residential fixed investment.
emphasis added
The advance Q3 GDP report, with 1.9% annualized growth, was slightly above expectations.

Personal consumption expenditures (PCE) increased at 2.9% annualized rate in Q3, down from 4.6% in Q2.  Residential investment (RI) increased at a 5.1% rate in Q3. Equipment investment decreased at a 3.8% annualized rate, and investment in non-residential structures decreased at a 15.3% pace.

I'll have more later ...