US GDP Growth Revised Up to 2.1% in Q3

The US economy advanced an annualized 2.1 percent on quarter in the three months to September of 2015, up from the 1.5 percent reported last month, according to the second estimate released by the Bureau of Economic Analysis. While consumer spending grew less than previously estimated, inventories expanded almost twice as much.

Personal consumption expenditure was the biggest contributor to growth (2.05 percentage points) but increased less than anticipated (up 3 percent compared to an advance estimate of 3.2 percent). Spending on durable goods grew 6.5 percent, less than 6.7 percent in the advance estimate and spending on services increased 2.2 percent compared to 2.6 percent in the advance estimate. Consumption of nondurable goods was up 4 percent compared to 3.5 percent reported last month.

Fixed investment added 0.54 percentage points to growth, expanding 3.4 percent (2.9 percent in the advance estimate) and boosted by a 7.3 percent rise in residential investment and a 2.4 percent gain in nonresidential. 

In contrast, private inventories subtracted 0.59 percentage points from the growth, less than a 1.44 percentage points in the advance estimate. Businesses accumulated $90.2 billion worth of inventory in the third quarter, instead of the $56.8 billion previously reported.

Meanwhile, exports rose only 0.9 percent (1.9 percent reported in the advance estimate) and imports increased 2.1 percent (1.8 percent in the advance estimate), bringing the impact from trade to -0.22 percentage points (0 in the advance estimate).

Government spending and investment added 0.29 percentage points to growth, up 1.7 percent and unchanged from the first estimate.

US GDP Growth Revised Up to 2.1% in Q3

BEA | Joana Taborda |
11/24/2015 2:14:05 PM