U.S. GDP Growth Revised to 2.7 Percent in Q3


U.S. Real gross domestic product increased at an annual rate of 2.7 percent in the third quarter of 2012 (that is, from the second quarter to the third quarter), according to the "second" estimate released by the Bureau of Economic Analysis.

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

The acceleration in real GDP in the third quarter primarily reflected upturns in private inventory investment and in federal government spending, a deceleration in imports, an acceleration in residential fixed investment, and a smaller decrease in state and local government spending that were partly offset by a downturn in nonresidential fixed investment and decelerations in exports and in PCE.

Real personal consumption expenditures increased 1.4 percent in the third quarter, compared with an increase of 1.5 percent in the second.  Durable goods increased 8.7 percent, in contrast to a decrease of 0.2 percent. Nondurable goods increased 1.1 percent, compared with an increase of 0.6 percent.  Services increased 0.3 percent, compared with an increase of 2.1 percent.

Real nonresidential fixed investment decreased 2.2 percent, in contrast to an increase of 3.6 percent.  Nonresidential structures decreased 1.1 percent, in contrast to an increase of 0.6 percent. Equipment and software decreased 2.7 percent, in contrast to an increase of 4.8 percent.  Real residential fixed investment increased 14.2 percent, compared with an increase of 8.5 percent.

Real federal government consumption expenditures and gross investment increased 9.5 percent in the third quarter, in contrast to a decrease of 0.2 percent in the second.  National defense increased 12.9 percent, in contrast to a decrease of 0.2 percent.  Nondefense increased 3.0 percent, in contrast to a decrease of 0.4 percent.  Real state and local government consumption expenditures and gross investment decreased 0.4 percent, compared with a decrease of 1.0 percent.

The change in real private inventories added 0.77 percentage point to the third-quarter change in real GDP, after subtracting 0.46 percentage point from the second-quarter change.  Private businesses increased inventories $61.3 billion in the third quarter, following increases of $41.4 billion in the second quarter and $56.9 billion in the first.


TradingEconomics.com, the Bureau of Economic Analysis
11/29/2012 1:39:16 PM