U.S. GDP Growth in Q3 2024: A Deep Dive into Economic Indicators
The U.S. Bureau of Economic Analysis (BEA) has recently released "Real Gross Domestic Product" (GDP) growth figures for the third quarter of 2024. Here’s an in-depth look at the latest economic indicators highlighting the key insights from the report.
GDP Growth in Q3 2024
According to the advance estimate released by the BEA, GDP (Real GDP—little adjustment of reported data) increased at an annual rate of 2.8 percent in the third quarter of 2024. This growth follows the 3.0 percent increase experienced in the second quarter. This report is based on preliminary data, which is subject to further revision.
Key Contributors to GDP Growth
The increase in real GDP was driven by various factors:
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Consumer Spending: A growth in consumer spending was noted, influenced by increases in both goods and services.
- Goods: Other nondurable goods (led by prescription drugs) and motor vehicles and parts.
- Services: Health care (led by outpatient services) as well as food services and accommodations.
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Exports: The growth in exports was led by an increase in goods, particularly capital goods excluding automotive.
- Federal Government Spending: There was a significant increase in federal government spending led by defense spending.
Comparison Between Q3 2024 and Q2 2024
The slowdown in GDP growth in the third quarter was primarily attributed to a decrease in private inventory investment and residential fixed investment. However, this was partially offset by accelerated growth in exports, consumer spending, and federal government spending. Meanwhile, imports also increased.
Current-Dollar GDP Growth
Current-dollar GDP, an inflation-adjusted measure, indicated a 4.7 percent increase at an annual rate, amounting to a $333.2 billion increase in the third quarter. In contrast, the second quarter displayed a 5.6 percent increase of $392.6 billion.
Price Indexes
The price index for gross domestic purchases increased by 1.8 percent in the third quarter, down from 2.4 percent in the second quarter. The PCE price index saw a 1.5 percent increase, compared to 2.5 percent in the second quarter, and excluding food and energy, PCE increased by 2.2 percent (down from 2.8 percent).
Personal Income and Saving
Current-dollar personal income and disposable personal income saw respective increases of $221.3 billion and $166.0 billion. However, the personal saving rate decreased to 4.8 percent from 5.2 percent during the second quarter.
Upcoming Releases
The BEA will release the second estimate for the third quarter of 2024 on November 27, 2024, which will be based on more complete data. The schedule for subsequent GDP and corporate profit releases throughout 2025 is laid out in detail on the BEA website.
Expert Opinion
The latest GDP figures reveal a continuation of economic momentum driven by consumer spending and government expenditure, offset by fluctuations in inventory investment and imports. As the economy enters the latter part of 2024, investors and policymakers will keep a close eye on the upcoming revised estimates and broader economic indicators to gauge future trends.
Call to Action
Stay tuned for the second estimate of GDP growth for Q3 2024 and understand how the evolution of economic indicators impacts the broader market. For the most accurate and up-to-date information, visit BEAFacts.