The real gross domestic product (GDP) of the U.S. increased at an annual rate of 2.8 percent in the third quarter of 2024, according to the latest estimates released by the U.S. Bureau of Economic Analysis. In the second quarter, real GDP increased 3 percent.
The data reflected upward revisions to private inventory investment and nonresidential fixed investment as well as downward revisions to exports and consumer spending. Imports, which are a subtraction in the calculation of GDP, were also revised down.
Current‑dollar GDP rises to $29.35 trillion
The increase in the real GDP of the U.S. primarily reflected increases in consumer spending, exports, federal government spending, and nonresidential fixed investment. Compared to the second quarter, the deceleration in real GDP in the third quarter primarily reflected a downturn in private inventory investment and a larger decrease in residential fixed investment. These movements were partly offset by accelerations in exports, consumer spending, and federal government spending. Imports accelerated.
The current‑dollar GDP of the U.S. increased 4.7 percent at an annual rate, or $337.6 billion, in the third quarter to $29.35 trillion, an upward revision of $4.4 billion from the previous estimate.
The price index for gross domestic purchases increased by 1.9 percent in the third quarter, an upward revision of 0.1 percentage point from the previous estimate. In addition, the personal consumption expenditures (PCE) price index increased 1.5 percent. Excluding food and energy prices, the PCE price index increased 2.1 percent, a downward revision of 0.1 percentage point.
Personal income
The data also revealed that current-dollar personal income increased to $175.9 billion in the third quarter, a downward revision of $45.3 billion from the previous estimate. Meanwhile, disposable personal income increased $122.9 billion in the third quarter, a downward revision of $43.1 billion from the previous estimate. In addition, real disposable personal income increased by 0.8 percent, a downward revision of 0.8 percentage points.
Meanwhile, personal savings reached $934.4 billion in the third quarter, a downward revision of $34 billion from the previous estimate. The personal saving rate was 4.3 percent in the third quarter, a downward revision of 0.5 percentage points.
GDI revised up
The U.S. real gross domestic income (GDI) increased 2.2 percent in the third quarter, compared with an increase of 2 percent in the second quarter. The average of real GDP and real GDI increased 2.5 percent in the third quarter, the same as in the second quarter.
Meanwhile, profits from current production decreased $10.2 billion in the third quarter, in contrast to an increase of $132.5 billion in the second quarter. In addition, profits of domestic financial corporations decreased $2.6 billion in the third quarter while profits of domestic nonfinancial corporations increased $30.8 billion.
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