US Q3 advance GDP +2.0% vs +2.7% expected
Highlights of the first look at Q3 GDP
- Q2 was +6.7% annualized (unrevised)
- Q1 was 6.4% annualized
- Personal consumption +1.6% vs +12.0% in Q2
- GDP deflator +5.7% vs +5.5% expected
- Core PCE +4.5% vs +4.5% expected
- GDP final sales -0.1% vs +8.1% in Q2
- Full report
Details:
- Inventories added 2.07 pp to GDP vs -1.26 pp in Q2
- Inventories cut -2.62 pp in Q1
- Exports -2.5% vs +7.6% second reading
- Imports +6.1% vs +7.1% second reading
- Trade was a 1.14 pp drag vs 0.18 pp drag in Q2
- Home investment -7.7% vs -11.7% in Q2
- Consumer spending on durables -26.2% vs +11.6% in Q2
- Personal consumption added 1.09 pp GDP vs +7.92 pp in Q2
- Government spending added 0.14 pp to GDP vs +0.36 pp in Q2
- Full report
Economist Julia Coronado notes that excluding motor vehicles, GDP grew at 7.4%. The demand is there for cars so this shows that it’s largely a chip-shortage phenomenon.
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