Gross Domestic Product (GDP) grew at an annual rate of 2.6% in the third quarter of the year, the Bureau of Economic Analysis (BEA) reported Thursday. The rise followed two consecutive quarters in which the economy saw negative growth, a traditional indicator of recession.
According to the advance estimate published by the Bureau of Economic Analysis, GDP grew by 2.6% on an annualized basis between July and September. This exceeded initial expectations and marks an improvement over the previous quarters' results this year: -0.6 % in the second quarter and -1.6 % in the first.
The BEA noted that this increase in GDP reflects the increases in exports, consumer spending, nonresidential fixed investment, federal government spending, and government spending. These increases were partially offset by declines in residential fixed investment and private inventory investment. Imports, which are subtracted in the calculation of GDP, decreased during the third quarter.
