U.S. GDP Revised Up to 3.2% in July-September

The July-September (third quarter) US Real Gross Domestic Product (GDP) figures have been revised upwards. Private consumption and corporate capital investment outperformed.

Key Point
July-September real GDP figures up 3.2% year-on-year The median forecast of economists in a Bloomberg survey predicted a 2.9% rise. Revised upward from the revised value (up 2.9%) Decreased by 0.6% in April-June (Q2)

The final figures for private consumption increased by 2.3%, a significant upward revision from the revised figures (1.7% increase). This reflected strong service-related spending.

The latest GDP figures highlight that consumer and business demand remains strong despite rising interest rates and high inflation. A strong labor market and wage growth have supported household spending, but it is unclear whether this spending momentum can be sustained into next year.

The July-September Personal Consumption Expenditures (PCE) price index was revised slightly upwards from the revised value, with the core excluding food and energy rising at an annualized rate of 4.7%.

Gross Domestic Income (GDI), another key indicator, rose 0.8%. The National Bureau of Economic Research’s (NBER) committee that dates business cycles uses the average of GDP and GDI to mark recessions. The average rose 2% in the July-September quarter.

See table for detailed statistics.

news-rsf-original-reference paywall">Original title:US Third-Quarter GDP Revised Higher to 3.2% on Firmer Spending(excerpt)

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