The Bureau of Economic Analysis reported in an advance estimate that annual Gross Domestic Product (GDP) growth was at 4.9% in the third quarter of 2023, exceeding expectations that placed it in the 4.2%. The figure represents an important and rapid rise after the increase to 2.1%, recorded in the second quarter of this year.
The increase in GDP was due in part to the "increases in consumer spending"(in goods and services), as well as the increase "in investment in private inventories, exports, spending by state and local administrations, spending by federal administrations, and residential fixed investment," according to the report.
Gdp3q23 Adv by Veronica Silveri on Scribd
The estimate also revealed that the "gross domestic purchases price index" increased by 3% (compared to a 1.4% increase in the second quarter).
Personal income and expenses
Consumer (personal) spending increased 4% (up from 0.8% in the second quarter). Gross private domestic investment increased by 8.4%. On the other hand, government spending and investments increased by 4.6%:
Personal income in current dollars increased by $199.5 billion in the third quarter, compared with an increase of $239.6 billion in the second quarter. This increase reflects increases in salaries, owners' income, personal income on assets and personal rental income, which were partially offset by a decrease in personal income from current transfers.
Disposable personal income increased by 1.9% in the third quarter, compared to 6.1% in the second quarter. Real disposable personal income decreased by 1.0%, in contrast to an increase of 3.5%.
According to the report, "personal savings were $776.9 billion in the third quarter, up from $1.04 trillion in the second quarter. The personal savings rate - personal savings as a percentage of disposable personal income - was 3. 8% in the third quarter, compared to 5.2% in the second quarter."
