US: Real GDP grows at an annual rate of 5.2% in Q3 vs 5.0% expected
|- The US economy grew at an annual rate of 5.2% in Q3; revised from 4.9%.
- The US Dollar Index stays in positive territory around 102.80.
The real Gross Domestic Product (GDP) of the United States expanded at an annual rate of 5.2% in the third quarter, the US Bureau of Economic Analysis' (BEA) preliminary estimate showed on Wednesday. This reading came in above expectations of 5.0% and above the previous estimate of 4.9%.
“The update primarily reflected upward revisions to nonresidential fixed investment and state and local government spending that were partly offset by a downward revision to consumer spending. Imports, which are a subtraction in the calculation of GDP, were revised down,” the BEA said.
Key takeaways from the report:
Real gross domestic product (GDP) increased at an annual rate of 5.2 percent in the third quarter of 2023 (table 1), according to the "second" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 2.1 percent.
Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected accelerations in consumer spending and private inventory investment and an upturn in exports that were partly offset by a deceleration in nonresidential fixed investment. Imports turned up.
Current‑dollar GDP increased 8.9 percent at an annual rate, or $581.5 billion, in the third quarter to a level of $27.64 trillion, an upward revision of $20.9 billion from the previous estimate.
The price index for gross domestic purchases increased 3.0 percent in the third quarter, the same as previously estimated. The PCE price index increased 2.8 percent, a downward revision of 0.1 percentage point. Excluding food and energy prices, the PCE price index increased 2.3 percent, a downward revision of 0.1 percentage point.
Market reaction
The US Dollar stays on positive ground with the DXY up by 0.10%, hovering around 102.80, rebounding from monthly lows.
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