BEA Revises Up 3rd Quarter GDP Growth to 2.1%

The Bureau of Economic Analysis yesterday upwardly revised its estimate of third quarter gross domestic product growth to 2.1 percent from 1.5 percent.  

The second estimate, based on more complete source data from its initial “advance” estimate last month, noted that the initially reported decrease in private inventory investment came in smaller than previously estimated.  

In the second quarter, GDP increased by 3.9 percent.  

BEA reported the increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures, nonresidential fixed investment, state and local government spending, residential fixed investment and exports, partly offset by a negative contribution from private inventory investment. Imports, a subtraction in the calculation of GDP, increased.  

Deceleration in real GDP in the third quarter primarily reflected a downturn in private inventory investment and decelerations in exports, in PCE, in nonresidential fixed investment, in state and local government spending and in residential fixed investment, partly offset by a deceleration in imports.