Newly released federal data reports that the U.S. gross domestic product grew slightly less than expected in the third quarter of 2024.
The U.S. Bureau of Economic Analysis released the data Wednesday, reporting that the GDP grew at an annualized rate of 2.8% which “primarily reflected increases in consumer spending, exports, and federal government spending.”
That figure is down slightly from 3% in the previous quarter.
A Bloomberg survey of economists reported they expected closer to 3% growth for this quarter’s data, slightly more than Wednesday’s data.
“The increase in consumer spending reflected increases in both goods and services. Within goods, the leading contributors were other nondurable goods (led by prescription drugs) and motor vehicles and parts,” BEA said. “Within services, the leading contributors were health care (led by outpatient services) as well as food services and accommodations.
“The increase in exports primarily reflected an increase in goods (led by capital goods, excluding automotive). The increase in federal government spending was led by defense spending. The increase in imports primarily reflected an increase in goods (led by capital goods, excluding automotive).”
GDP data is usually revised, either up or down, so these numbers will likely be adjusted.
The White House touted the growth Wednesday.
“The robust U.S. fiscal response partially explains why GDP growth and consumer spending were much stronger in the United States than in other advanced economies,” the White House said in a press release. “U.S. real GDP growth since 2019Q4 was 11.4%, more than double the next-largest expansion in the G7.”
The data also showed that Americans’ disposable income increased while their savings decreased.
“Disposable personal income increased $166.0 billion, or 3.1 percent, in the third quarter, compared with an increase of $260.4 billion, or 5.0 percent, in the second quarter,” BEA said. “Real disposable personal income increased 1.6 percent, compared with an increase of 2.4 percent. Personal saving was $1.04 trillion in the third quarter, compared with $1.13 trillion in the second quarter.
“The personal saving rate — personal saving as a percentage of disposable personal income — was 4.8 percent in the third quarter, compared with 5.2 percent in the second quarter.”
