Real GDP increased at a seasonally adjusted annual rate of 3.2% during the third quarter of 2022, according to the Bureau of Economic Analysis’s “Third” estimate. Real GDP decreased 0.6% in the second quarter of 2022.
The “third” estimate of GDP released today is based on more complete source data than were available for the “second” estimate issued last month. In the second estimate, the increase in real GDP was 2.9 percent. The updated estimates primarily reflected upward revisions to consumer spending and nonresidential fixed investment that were partly offset by a downward revision to private inventory investment.
The increase in real GDP for the third quarter reflected increases in exports, consumer spending, nonresidential fixed investment, state and local government spending, and federal government spending, that were partly offset by decreases in residential fixed investment and private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased
Consumption added 1.54 percentage points (pp) to growth; this follows a 1.38 pp addition during the second quarter of 2022. The increase in PCE was driven by services (led by healthcare and other services) offset by decreases in durable goods (with the largest fall in motor vehicle parts) and nondurable goods (with the largest fall in food and beverages purchased for off-premises consumption). Inventories fell, subtracting 1.19 pp from GDP. Residential investment subtracted a total of 1.42 pp from GDP.
Business investment added 0.80 pp from GDP. Investment in intellectual property added 0.36 pp to GDP while investment in structures subtracted 0.09 pp.
Government spending increased, adding 0.65 pp to GDP. Federal and state-local government added 0.24 and 0.41 pp to GDP, respectively.
Read the BEA release.
