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Saturday, September 21, 2019
HomeNewsEconomyGDP: U.S. Economy Grew at Advance 3% Pace in Third Quarter

GDP: U.S. Economy Grew at Advance 3% Pace in Third Quarter

Cargo containers sit idle at the Port of Los Angeles as a back-log of over 30 container ships sit anchored outside the Port in Los Angeles, California, February 18, 2015. (Photo: Reuters)
Cargo containers sit idle at the Port of Los Angeles as a back-log of over 30 container ships sit anchored outside the Port in Los Angeles, California, February 18, 2015. (Photo: Reuters)

Cargo containers sit idle at the Port of Los Angeles as a back-log of over 30 container ships sit anchored outside the Port in Los Angeles, California, February 18, 2015. (Photo: Reuters)

The Bureau of Economic Analysis (BEA) said the advance estimate for third quarter gross domestic product (GDP) was 3%, far stronger than the 2.5% median forecast. GDP was not expected to be this strong given the devastating hurricanes, but inventory buildups served as a net plus this quarter.

The advance estimate follows a final reading of 3.1% in the second quarter, a clear indication the U.S. economy is picking up steam under the Trump Administration.

Disposable personal income increased $73.6 billion, or 2.1%, while real consumer spending increased by 2.4%, slightly more than the forecast.

Personal saving was $494.8 billion in the third quarter, compared with $545.6 billion in the second. The personal saving rate — personal saving as a percentage of disposable personal income — was 3.4% in the 3Q, down from 3.8%.

The advance estimate for GDP, along with the Survey of Consumers at a 13-year high, ends a week of historically positive economic news. Wages are rising, manufacturing is booming, jobless claims are down to the lowest levels since the 1970s and unemployment is at an all-time low.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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