U.S. Economy Grew at Faster Pace than Initially Expected in Q3 2019
The Bureau of Economic Analysis (BEA) reported the third estimate for third-quarter (Q3) 2019 gross domestic product (GDP) held at 2.1%, higher than initially forecasted. Real GDP rose by 2.0% in Q2 2019.
Second estimate forecasts ranged from a low of 1.7% to a high of 2.1%. The second consensus forecast was 1.9% and the forecast for the advance was just 1.6%.
Third estimate forecasts ranged from a low of 1.9% to a high of 2.1%. The consensus was 2.1%.
The final reading on Q3 2019 GDP reflects upward revisions to personal consumption expenditures (PCE) and nonresidential fixed investment, which were offset by a downward revision to private inventory investment.
Consumer spending came in at a much stronger 3.2% for Q3 2019. That’s up from 2.9% in the second estimate.
Consumer spending forecasts ranged from a low of 2.8% to a high of 2.9%, and the consensus was 2.8%.
Real gross domestic income (GDI) rose 2.1% in the quarter, compared with a much smaller gain of 0.9% in Q2 2019. The average of real GDP and real GDI—a supplemental measure of U.S. economic activity that equally weights GDP and GDI—also rose 2.1% in Q3, up from 1.4% in Q2.