US Third Quarter GDP Revised Up


Real gross domestic product in the United States increased at an annual rate of 2.6 percent in the third quarter of 2010, (that is, from the second quarter to the third quarter), according to the third estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 1.7 percent.

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

The acceleration in real GDP in the third quarter primarily reflected a sharp deceleration in imports and an acceleration in private inventory investment that were partly offset by a downturn in residential fixed investment and decelerations in nonresidential fixed investment and in exports.

Motor vehicle output added 0.49 percentage point to the third-quarter change in real GDP after subtracting 0.06 percentage point from the second-quarter change. Final sales of computers added 0.29 percentage point to the third-quarter change in real GDP after adding 0.03 percentage point to the second-quarter change.


Real personal consumption expenditures increased 2.4 percent in the third quarter, compared with an increase of 2.2 percent in the second.  Real nonresidential fixed investment increased 10.0 percent, compared with an increase of 17.2 percent. Nonresidential structures decreased 3.5 percent, compared with a decrease of 0.5 percent. Equipment and software increased 15.4 percent, compared with an increase of 24.8 percent.  Real residential fixed investment decreased 27.3 percent, in contrast to an increase of 25.7 percent.

Real exports of goods and services increased 6.8 percent in the third quarter, compared with an increase of 9.1 percent in the second.  Real imports of goods and services increased 16.8 percent, compared with an increase of 33.5 percent.

Real federal government consumption expenditures and gross investment increased 8.8 percent in the third quarter, compared with an increase of 9.1 percent in the second. National defense increased8.5 percent, compared with an increase of 7.4 percent.  Nondefense increased 9.5 percent, c mpared with an increase of 12.8 percent.  Real state and local government consumption expenditures and gross investment increased 0.7 percent, compared with an increase of 0.6 percent.

The change in real private inventories added 1.61 percentage points to the third-quarter change in real GDP, after adding 0.82 percentage point to the second-quarter change.  Private businesses increase inventories $121.4 billion in the third quarter, following increases of $68.8 billion in the second quarter and $44.1 billion in the first.

     


TradingEconomics.com, US Bureau of Economic Analysis
12/22/2010 3:34:21 PM