Advance Estimate: Q3 GDP Increased 2.5%
According to the Bureau of Economic Analysis (U.S. Department of Commerce), real gross domestic product in the United States increased at an annual rate of 2.5% in the third quarter of 2011.
This number, which is an "advance estimate" (the second estimate, which is based on more complete data, will be released in the second half of November), was generally in line with expectations.
Q3's GDP number was helped out by a rebound in personal consumption expenditures, which increased to 2.4% in Q3. Q2 PCE (personal consumption expenditures) posted an increase of just 0.7%, which helped to contribute to a 1.3% annualized GDP growth rate in the second quarter.
On the flip side, Q3's PCE number was helped out by a decline in the personal saving rate (saving as a percentage of disposable personal income). The personal saving rate was 4.1% in the third quarter, down from 5.1% in Q2.
More from the BEA on Q3's number:
"The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures (PCE), nonresidential fixed investment, exports, and federal government spending that were partly offset by negative contributions from private inventory investment and state and local government spending."
You can get a full breakdown of the advance GDP estimate from the BEA by clicking on the link below.
Let's take a quick look at GDP growth from the last four quarters:
Q4 2010 - 2.3%
Q1 2011 - 0.4%
Q2 2011 - 1.3%
Q3 2011 - 2.5%
The US economy has avoided falling into a recession in 2011, but there are still warning signs that are flashing that could help pull the economy into a "double dip recession" in the future.
Source: Historical GDP Numbers
Filed under: General Knowledge