The nation’s real gross domestic product growth accelerated in the third quarter, driven by gross private domestic investment, including information processing equipment, according to a data released Thursday (Oct. 29) by the Bureau of Economic Analysis (BEA).
Real GDP grew at an annual rate of 3.4% in the third quarter. That figure was up from 2.2% in the second quarter, according to a Thursday BEA press release outlining the GDP advance estimate for the third quarter.
“The contributors to the increase in real GDP in the third quarter were increases in investment, consumer spending and government spending that were partly offset by a decrease in exports,” the BEA said in the release. “Imports, which are a subtraction in the calculation of GDP, increased.”
The BEA added in the release: “Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected an acceleration in investment and an upturn in government spending that were partly offset by a downturn in exports. Imports increased more in the third quarter than in the second quarter.”
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In terms of percent change from the previous quarter, gross private domestic investment was up 19.4%, government consumption expenditures and gross investment increased by 5.3%, personal consumption expenditures grew by 3.8%, exports declined by 5.7% and imports rose by 19.7%.
Within the gross private domestic investment category, equipment was up 20.9% from the second quarter.
In terms of contributions to percentage change in real GDP, growth was led by gross private domestic investment, which added 3.27 percentage points to the third quarter annualized rate. Within that category, information processing equipment contributed 0.86 percentage points.
Personal consumption expenditures added 2.52 percentage points, government consumption expenditures and gross investment added 0.90 percentage points, and net exports of goods and services subtracted 3.32 percentage points, per the table.
Reuters reported Thursday that the increase in GDP was greater than expected. Economists had forecast growth at a rate of 3.2%.
The report attributed the GDP growth to resilient consumer spending and business investment in artificial intelligence.
PYMNTS reported Tuesday (Oct. 27) that data released by the Census Bureau showed that demand for AI infrastructure, business equipment and transportation equipment drove an increase in durable goods orders in September.
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