U.S. GDP Growth Accelerates in Q3
Real gross domestic product (GDP) increased 4.1% in Q3/13, according to the third estimate released by the Bureau of Economic Analysis. The growth rate was 0.5 percentage point more than the second estimate released earlier this month. In the second quarter, the growth rate was 2.5%.
The upward revision to Q3 GDP growth was largely accounted for by a revision to consumer spending to 2.0% growth (third estimate), up from 1.4% (second estimate). That revision mainly reflected an upward revision to services, especially to healthcare and to recreation services. Consumer spending on nondurable goods was also revised up, mainly gasoline and other energy goods.
In addition, business investment was revised up, mainly in intellectual property products, specifically software. Partially offsetting the upward revisions, residential investment was revised down.
The revised estimate of Q3 corporate profits was little changed from the previous estimate. Profits increased 1.9% after increasing 3.3% in Q2.
To read the full BEA news release click here.