US GDP grew by 4.9% in the third quarter

In the third quarter, US GDP showed growth of 4.9% year-on-year, according to the initial estimate of the Ministry of Commerce. This is the fastest growth since the end of 2021. 

Analysts' forecasts were focused on an increase of 4.3%. Compared to the second quarter, when GDP increased by 2.1%, the growth dynamics accelerated markedly.

In July-September, consumer spending, which makes up two-thirds of the total economy, increased by 4%. This is the best indicator since the fourth quarter of 2021.

Government spending also increased, reaching 4.6%. For the first time in two years, there is an increase in investment in housing construction – by 3.9%. Exports increased by 6.2%, while imports increased by 5.7%.

The PCE Core index, which is considered by the Federal Reserve to analyze inflation risks, increased by 2.4% in the third quarter. This is the slowest growth since the fourth quarter of 2020, considering that the indicator grew by 3.7% in the previous quarter.

The data from the Ministry of Commerce, presented today, is the first of three estimates of the change in GDP. It is expected that the revised data for the third quarter will be published on November 29, and the final figures on December 21.