Real GDP Increases at an Annual Rate of 5.2% in Q3, BEA Reports in Its “Second” Estimate

The Bureau of Economic Analysis (BEA) released on Wednesday (11-29-23) its “second” estimate for Q3 real gross domestic product (GDP). According to the report, GDP increased at an annual rate of 5.2%. This follows a reported real GDP increase of 2.1% in Q2.

The “second” estimate is based on more complete source data than were available for the “advance” estimate issued last month. In the advance estimate, the increase in real GDP was 4.9%. 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 lower.

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. Imports increased as well.

Compared to Q2, the acceleration in real GDP in Q3 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.