The American economy expanded an annualized 4.9% in the third quarter of 2023, slightly below 5.2% in the second estimate, but matching the 4.9% initially reported in the advance estimate. It still marks the strongest growth since Q4 2021. Consumer spending rose less than initially anticipated (3.1% vs 3.6% in the second estimate), but remained the biggest gain since Q4 2021. The slowdown was mainly due to services spending. Also, private inventories added 1.27 pp to growth, below 1.4 pp in the second estimate and both exports (5.4% vs 6%) and imports (4.2% vs 5.2%) increased less than initially anticipated. On the other hand, nonresidential investment was revised higher to show a 1.4% rise (vs 1.3% in the second estimate) as investment in structures surged way more than expected (11.2% vs 6.9%). Both residential investment (6.7% vs 6.2%, the first rise in nearly two years) and government spending (5.8% vs 5.5%) were also revised higher. source: U.S. Bureau of Economic Analysis
The Gross Domestic Product (GDP) in the United States expanded 4.90 percent in the third quarter of 2023 over the previous quarter. GDP Growth Rate in the United States averaged 3.20 percent from 1947 until 2023, reaching an all time high of 34.80 percent in the third quarter of 2020 and a record low of -28.00 percent in the second quarter of 2020. This page provides the latest reported value for - United States GDP Growth Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. United States GDP Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on December of 2023.
The Gross Domestic Product (GDP) in the United States expanded 4.90 percent in the third quarter of 2023 over the previous quarter. GDP Growth Rate in the United States is expected to be 1.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United States GDP Growth Rate is projected to trend around 1.70 percent in 2024 and 1.80 percent in 2025, according to our econometric models.
United States GDP Growth Rate
On the expenditure side, personal consumption expenditures accounts for 68 percent of total GDP out of which purchases of goods constitute 23 percent and services 45 percent. Private investment accounts for 16 percent of GDP and government consumption and investment for 18 percent. As the value of goods exported (13.5 percent) is lower than the value of goods imported (16.5 percent), net exports subtracts 3 percent from the total GDP value.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 4.90 | 2.10 | 34.80 | -28.00 | 1947 - 2023 | percent | Quarterly | SA |
News Stream
US Economy Grows 4.9% in Q3
The American economy expanded an annualized 4.9% in the third quarter of 2023, slightly below 5.2% in the second estimate, but matching the 4.9% initially reported in the advance estimate. It still marks the strongest growth since Q4 2021. Consumer spending rose less than initially anticipated (3.1% vs 3.6% in the second estimate), but remained the biggest gain since Q4 2021. The slowdown was mainly due to services spending. Also, private inventories added 1.27 pp to growth, below 1.4 pp in the second estimate and both exports (5.4% vs 6%) and imports (4.2% vs 5.2%) increased less than initially anticipated. On the other hand, nonresidential investment was revised higher to show a 1.4% rise (vs 1.3% in the second estimate) as investment in structures surged way more than expected (11.2% vs 6.9%). Both residential investment (6.7% vs 6.2%, the first rise in nearly two years) and government spending (5.8% vs 5.5%) were also revised higher.
2023-12-21
US Economy Grows More than Expected
The US economy expanded an annualized 5.2% in Q3 2023, higher than 4.9% in the preliminary estimate, and forecasts of 5%. It marks the strongest growth since Q4 2021. Nonresidential investment was revised higher to show a 1.3% rise instead of a 0.1% fall initially estimated, as the drop in equipment was shorter (-3.5% vs -3.8% in the advance estimate) and structures surged 6.9% (vs 1.6%). Also, residential investment rose for the first time in nearly two years and at a much faster pace than initially expected (6.2% vs 3.9% in the advance estimate). Meanwhile, private inventories added 1.4 pp to growth, above 1.32 pp in the previous estimate and government spending increased faster (5.5% vs 4.6%). On the other hand, consumer spending went up 3.6%, slightly less than 4% in the advance estimate, but remaining the biggest gain since Q4 2021. The slowdown was mainly due to services spending. Exports soared 6% (vs 6.2%) and imports increased less (5.2% vs 5.7%).
2023-11-29
US GDP Grows More than Expected in Q3
The US economy expanded an annualized 4.9% in the third quarter of 2023, the most since the last quarter of 2021, above market forecasts of 4.3% and a 2.1% expansion in Q2, the advance estimate showed. Consumer spending rose 4%, the most since Q4 2021 (vs 0.8% in Q2 2023), led by consumption of housing and utilities, health care, financial services and insurance, food services and accommodations and nondurable goods (led by prescription drugs), recreational goods and vehicles. Exports soared 6.2%, rebounding from a 9.3% fall in Q2 and imports also increased (5.7% vs -7.6%). Private inventories added 1.32 pp to growth, the first gain in three quarters. Also, residential investment rose for the first time in nearly two years (3.9% vs -2.2%) and government spending increased faster (4.6% vs 3.3%). On the other hand, nonresidential investment contracted for the first time in two years (-0.1% vs 7.4%), due to a 3.8% fall in equipment (vs 7.7%) and a slowdown in structures (1.6% 16.1%).
2023-10-26
The data you're referring to touches upon the Gross Domestic Product (GDP) and its various components, revealing the intricate details of the American economy's growth in the third quarter of 2023. The GDP growth rate is a crucial metric that signifies the overall health and performance of a country's economy.
The GDP growth rate in the United States for Q3 2023 stood at 4.9%, a strong indicator of economic expansion. It's essential to break down the components that contribute to this growth rate:
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Consumer Spending: This represents the largest portion of GDP (around 68%), and in Q3 2023, it increased by 3.1%. Although this was slightly lower than anticipated, it marked a significant gain, particularly in areas like housing, utilities, healthcare, and nondurable goods.
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Private Inventories: A key element that contributed positively to growth, albeit slightly lower than the second estimate, adding 1.27 percentage points to overall growth.
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Exports and Imports: While both exports and imports increased, they did so at rates lower than initially anticipated. Exports soared by 5.4% and imports by 4.2%.
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Investment: Nonresidential investment rose by 1.4%, surpassing the second estimate, primarily driven by a surge in investment in structures, which grew by 11.2%. Residential investment also saw growth after nearly two years, increasing by 6.7%.
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Government Spending: This also contributed to the growth, rising by 5.8%, slightly higher than the second estimate.
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Forecasts and Projections: The long-term projections for the GDP growth rate indicate a potential trend around 1.70% in 2024 and 1.80% in 2025.
These figures and estimates are crucial for policymakers, investors, and businesses as they provide insights into the performance of different sectors within the economy. Understanding the nuances and impact of each component allows for more informed decision-making at both micro and macro levels.
As an enthusiast in economics, I continually track and analyze such economic indicators to comprehend the nuances of economic growth and its implications on various sectors and stakeholders involved. If you have more specific questions or need further details, feel free to ask!
