US Real GDP Increases at an Annual Rate of 2.8% in Q3, BEA Reports in Its “Second” Estimate

On Wednesday, the Bureau of Economic Analysis (BEA) released its “second” estimate for real gross domestic product (GDP) in Q3. Real GDP increased at an annual rate of 2.8% in Q3, following a reported increase of 3.0% 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 also 2.8%. The update primarily reflected upward revisions to private inventory investment and nonresidential fixed investment as well as downward revisions to exports and consumer spending. Imports, which are a subtraction in the calculation of GDP, were revised downward.

The increase in real GDP primarily reflected increases in consumer spending, exports, federal government spending, and nonresidential fixed investment. Imports increased.

Compared to Q2, the deceleration in real GDP in Q3 primarily reflected a downturn in private inventory investment and a larger decrease in residential fixed investment. These movements were partly offset by accelerations in exports, consumer spending, and federal government spending. Imports accelerated.