US Real GDP Increases at an Annual Rate of 4.9% in Q3, BEA Reports in Its “Third” Estimate

The Bureau of Economic Analysis (BEA) released on Thursday (12-21-23) its “third” estimate for Q3 real gross domestic product (GDP). According to the report, real GDP increased at an annual rate of 4.9%. This follows a reported real GDP increase of 2.1% in Q2.

The “third” estimate 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 5.2%. The update primarily reflects a downward revision to consumer spending. Imports, which are a subtraction in the calculation of GDP, were also 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 exports and in consumer spending and private inventory investment. Those gains were partially offset by a deceleration in nonresidential fixed investment. Imports also increased.