US GDP Growth Revised Up to 3.9% in Q3


The United States economy advanced an annualized 3.9 percent in the third quarter of 2014, according to the second estimate released by the Bureau of Economic Analysis. The new figure comes better than an advance estimate of 3.5 percent, as consumer spending and investment contributed more to the growth.

Real personal consumption expenditures increased 2.2 percent in the third quarter, compared with an increase of 2.5 percent in the second. Durable goods increased 8.7 percent, compared with an increase of 14.1 percent. Nondurable goods increased 2.2 percent, the same increase as in the second quarter.  Services increased 1.2 percent, compared with an increase of 0.9 percent.

Real nonresidential fixed investment increased 7.1 percent in the third quarter, compared with an increase of 9.7 percent in the second.  Investment in nonresidential structures increased 1.1 percent, compared with an increase of 12.6 percent. Investment in equipment increased 10.7 percent, compared with an increase of 11.2 percent. Investment in intellectual property products increased 6.4 percent, compared with an increase of 5.5 percent. Real residential fixed investment increased 2.7 percent, compared with an increase of 8.8 percent.

Real exports of goods and services increased 4.9 percent in the third quarter, compared with an increase of 11.1 percent in the second. Real imports of goods and services decreased 0.7 percent, in contrast to an increase of 11.3 percent.

Real federal government consumption expenditures and gross investment increased 9.9 percent in the third quarter, in contrast to a decrease of 0.9 percent in the second. National defense increased 16.0 percent, compared with an increase of 0.9 percent. Nondefense increased 0.4 percent, in contrast to a decrease of 3.8 percent. Real state and local government consumption expenditures and gross investment increased 0.8 percent, compared with an increase of 3.4 percent.

The change in real private inventories subtracted 0.12 percentage point from the third-quarter change in real GDP after adding 1.42 percentage points to the second-quarter change. Private businesses increased inventories $79.1 billion in the third quarter, following increases of $84.8 billion in the second quarter and $35.2 billion in the first.

Real final sales of domestic product -- GDP less change in private inventories -- increased 4.1 percent in the third quarter, compared with an increase of 3.2 percent in the second.

US GDP Growth Revised Up to 3.9% in Q3


U.S. Commerce Department | Joana Taborda | joana.taborda@tradingeconomics.com
11/25/2014 1:41:39 PM