U.S. GDP Growth Revised to 3.1% for Q3 2024

The U.S. economy expanded at an annualized rate of 3.1% in the third quarter of 2024, according to the "third" estimate released by the U.S. Bureau of Economic Analysis (BEA).

The U.S. economy expanded at an annualized rate of 3.1% in the third quarter of 2024, according to the "third" estimate released by the U.S. Bureau of Economic Analysis (BEA). This marks a slight improvement from the previously reported 2.8% in the "second" estimate and follows a 3.0% growth rate in the second quarter. The upward revision reflects stronger consumer spending and exports, offset slightly by downward adjustments to private inventory investment.

Key Contributors to GDP Growth

The increase in real GDP was primarily fueled by:

• Consumer Spending: A significant driver of the economy.
• Exports: Strengthened by robust demand for U.S. goods and services.
• Nonresidential Fixed Investment: Growth in business investments contributed positively.
• Federal Government Spending: Increased activity added to economic expansion.

While these components boosted GDP, the rise in imports, which are subtracted from GDP calculations, and declines in private inventory and residential fixed investment partially offset the gains.

Quarter-to-Quarter Acceleration

The acceleration in GDP growth from Q2 to Q3 was driven by:

• Stronger gains in exports and consumer spending.
• Increased federal government spending.

These factors outweighed the larger declines in private inventory and residential fixed investment during the quarter.

Current Dollar and Price Index Changes

In current dollar terms, GDP rose by 5.0%, or $358.2 billion, to reach $29.37 trillion, representing a $20.6 billion upward revision from the prior estimate.

The price index for gross domestic purchases increased by 1.9%, unchanged from the previous estimate. The personal consumption expenditures (PCE) price index rose by 1.5%, while the core PCE index, excluding food and energy, was revised upward by 0.1 percentage points to 2.2%.

The updated data highlights a strong U.S. economy in the third quarter, supported by solid domestic and international demand.

Source: Bureau of Economic Analysis