US GDP Expands 2% in Q3


The US economy advanced an annualized 2 percent on quarter in the three months to September of 2015, slightly lower than a 2.1 percent expansion earlier reported but above market expectations of a 1.9 percent growth, final estimates showed. While household spending and fixed investment remained robust, inventories grew less than expected.

Personal consumption expenditure (PCE) contributed 2.04 percentage points to growth (2.05 percent in the second estimate), up 3 percent and unchanged from the previous figure. Spending on durable goods (up 6.6 percent from 6.5 percent) and nondurable goods (up 4.2 percent from 4 percent) expanded more than anticipated while consumption in services grew less (up 2.1 percent from 2.2 percent). In the second quarter, PCE rose 3.6 percent.

Fixed investment added 0.6 percentage points to growth (0.54 percent in the second estimate) and expanded at a faster 3.7 percent (3.4 percent in the second estimate), boosted by a 2.6 percent gain in nonresidential investment (2.4 percent in the second estimate) and an 8.2 percent gain in residential (7.3 percent in the second estimate). In the second quarter of the year, fixed investment grew 5.2 percent.

In contrast, private inventories subtracted 0.59 percentage points from the growth, the same as in the second estimate. Businesses accumulated $85.5 billion worth of inventory in the third quarter, instead of the $92.0 billion previously reported. In the second quarter of the year, inventories amounted to $113.5 billion.  

Meanwhile, exports rose less than anticipated (up 0.7 percent from 0.9 percent in the second estimate) and imports increased at a faster 2.3 percent (2.1 percent in the second estimate), bringing the impact from trade to -0.26 percentage points (-0.22 in the second estimate). In the second quarter of the year, net trade added 0.18 percentage points to growth. 

Government spending and investment added 0.32 percentage points to growth, up 1.8 percent (1.7 percent in the second estimate) but lower than 2.6 percent in the second quarter. 

US GDP Expands 2% in Q3


BEA | Joana Taborda | joana.taborda@tradingeconomics.com
12/22/2015 2:06:01 PM