US GDP Growth Revised Up to 3.3% in Q3, Highest in 3 Years



The US economy expanded an annualized 3.3 percent on quarter in the third quarter of 2017, above an advance reading of 3 percent and higher than market expectations of 3.2 percent, the second estimate from the BEA showed. It is the highest growth rate since the third quarter of 2014 when the economy advanced 5.2 percent as nonresidential fixed investment, private inventory investment and government spending were revised up.

Personal consumption expenditure (PCE) contributed 1.6 percentage points to growth (1.62 percent in the advance estimate) and rose 2.3 percent (2.4 percent in the advance estimate). Spending slowed more than anticipated for nondurable goods (2 percent compared to 2.1 percent in the advance estimate) and rose less for durable goods (8.1 percent compared to 8.3 percent in the advance estimate). Services went up 1.5 percent, the same as in the advance estimate.  

Fixed investment added 0.39 percentage points to growth (0.25 percentage points in the advance estimate) and increased 2.4 percent, compared to a 1.5 percent expansion in the advance estimate. Investment rose more for equipment (10.4 percent compared to 8.6 percent in the advance estimate) and intellectual property products (5.8 percent compared to 4.3 percent) and shrank less for residential (-5.1 percent compared to -6 percent). On the other hand, it fell more for structures (-6.8 percent compared to -5.2 percent). 

Private inventories added 0.8 percentage points to growth, compared to 0.73 percent in the advance estimate. 

Meanwhile, exports went up at a slower 2.2 percent (2.3 percent in the advance estimate) and imports shrank 1.1 percent, faster than a 0.8 percent drop in the advance estimate. As a result, the impact from trade was revised higher to 0.43 percent from 0.41 percent. 

Government spending and investment added 0.07 percentage points to growth, compared to a drag of 0.02 percentage points. It increased 0.4 percent, compared to an initial estimate of a 0.1 percent fall. 

US GDP Growth Revised Up to 3.3% in Q3, Highest in 3 Years


BEA | Joana Taborda | joana.taborda@tradingeconomics.com
11/29/2017 1:59:58 PM