US GDP Growth Revised Slightly Down to 3.2%


The US economy expanded an annualized 3.2 percent on quarter in the third quarter of 2017, slightly below a second estimate of 3.3 percent and lower than market expectations of 3.3 percent, the final reading from the BEA showed. Still, it is the highest growth rate since the first quarter of 2015. The contribution from both personal consumption and net trade was lower than initially expected while spending from government was revised much higher.

Personal consumption expenditure (PCE) contributed 1.49 percentage points to growth (1.6 percent in the second estimate) and rose 2.2 percent (2.3 percent in the second estimate). Services expanded less than expected (1.1 percent compared to 1.5 percent in the second estimate) while faster growth was seen for both nondurable (2.3 percent compared to 2 percent in the second estimate) and durable goods (8.6 percent compared to 8.1 percent in the second estimate).   

Fixed investment added 0.40 percentage points to growth (0.39 percentage points in the second estimate) and increased 2.4 percent, unchanged form the previous estimate. Investment rose more for equipment (10.8 percent compared to 10.4 percent in the second estimate) and shrank less for residential (-4.7 percent compared to -5.1 percent). On the other hand, it went up less for intellectual property products (5.2 percent compared to 5.8 percent) and fell more for structures (-7 percent compared to -6.8 percent). 

Private inventories added 0.79 percentage points to growth, compared to 0.8 percent in the second estimate. 

Meanwhile, exports went up at a slower 2.1 percent (2.2 percent in the second estimate) and imports shrank 0.7 percent, less than a 1.1 percent drop in the second estimate. As a result, the impact from trade was revised down to 0.36 percent from 0.43 percent. 

Government spending and investment added 0.12 percentage points to growth, compared to 0.07 percentage points. It increased 0.7 percent, compared to an initial estimate of a 0.4 percent rise. 

US GDP Growth Revised Slightly Down to 3.2%


BEA | Joana Taborda | joana.taborda@tradingeconomics.com
12/21/2017 2:06:13 PM