US GDP Growth Quarter over Quarter 3rd Quarter 2019
US GDP Growth Slows Less than Expected
The US economy grew by an annualized 1.9 percent in the third quarter of 2019, beating market expectations of 1.6 percent and following a 2.0 percent expansion in the previous three-month period, the advance estimate showed.
Personal consumption expenditures (PCE) rose 2.9 percent in the third quarter (vs 4.6 percent in Q2) mainly boosted by consumption of goods (5.5 percent vs 8.6 percent), in particular durable goods (7.6 percent vs 13.0 percent), and services (1.7 percent vs 2.8 percent). Federal government spending advanced 3.4 percent (vs 8.3 percent in Q2) and state and local government spending rose 1.1 percent (vs 2.7 percent in Q2). In addition, there was a rebound in both residential fixed investment (5.1 percent vs -3.0 percent) and exports (0.7 percent vs -5.7 percent).
Business investment shrank 3.0 percent, the sharpest contraction in more than 3-1/2 years, dragged by declines in spending on equipment and nonresidential structures such as mining exploration, shafts and wells. Business accumulated inventory at USD 69.0 billion pace after building stocks at a USD 69.4 billion rate in the second quarter.
Also, imports rose 1.2 percent (vs 0.0 percent in Q2) led by purchases of services (4.4 percent vs -0.7 percent).
The price index for gross domestic purchases increased 1.4 percent in the third quarter, compared with an increase of 2.2 percent in the second quarter. The PCE price index increased 1.5 percent, compared with an increase of 2.4 percent. Excluding food and energy prices, the PCE price index increased 2.2 percent, compared with an increase of 1.9 percent.