Real GDP grew at an annual rate of 5.2% in the third quarter of 2023, according to the “second” estimate released by the Bureau of Economic Analysis. Real GDP increased 2.1% in the second quarter of 2023. The second estimate rose 0.3 percentage points (pp) from an annual rate of 4.9% in the “advance” estimate, reflecting upward revisions to nonresidential fixed investment and state and local government spending that were partly offset by a downward revision to consumer spending.
The increase in real GDP reflected increases in consumer spending, private inventory investment, exports, state and local government spending, federal government spending, residential fixed investment, and nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
Consumption added 2.44 pp to growth, following a 0.55 pp addition in the second quarter of 2023. The increase in PCE was driven by services (1.38 pp) such as those in the household consumption expenditure: housing and utilities (0.37 pp), food services and accommodations (0.34 pp), and health care (0.32 pp). Goods (1.05 pp), including recreational goods and vehicles (0.39 pp), furnishings and durable household equipment (0.10 pp), other nondurable goods (0.37 pp), and clothing and footwear (0.13 pp) also added to growth. Gasoline and other energy goods category and motor vehicles and parts subtracted 0.09 and 0.02 pp, respectively, from real GDP growth. Inventories added1.40 pp.
Business investment added 0.42 pp to GDP. Nonresidential fixed investment added 0.18 pp, with equipment subtracting 0.18 pp, structures adding 0.21 pp, and intellectual property products adding 0.15 pp. Residential fixed investment added 0.24 pp.
Government spending increased, adding 0.94 pp to GDP. Federal and state-local government added 0.44 and 0.50 pp to GDP, respectively.
Exports added 0.65 pp to GDP while imports subtracted 0.69 pp.
Read the BEA release.
