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Last Update: 27-Oct-11 09:52 ET
Q3 GDP Increases By Its Fastest Rate in a Year
According to the advance report, GDP increased 2.5% in the third quarter after increasing 1.3% in Q2 2011. That was the biggest increase since Q3 2010. The Briefing.com consensus expected GDP to increase 2.3%.
In all, the GDP report was relatively strong and there were few surprises. The data clearly show that the U.S. is not in a recession and that the likelihood of entering one in the next few months is low.
Every sector, with the exception of changes in private inventories, was in the black. After subtracting out the inventory slowdown, final sales of real GDP increased 3.6% in the third quarter. That was two percentage points greater than the final sales increase in Q2 2011 and the largest increase since Q4 2010.
Personal consumption expenditures increased 2.4% on healthy growth in durable (+4.1%) and services (+3.0%) demand.
Nonresidential investment increased 16.3% as nonresidential structures investment increased 13.3% and equipment and software spending increased 17.4%.
Residential construction was up 2.4% and posted its first consecutive increase since the third and fourth quarters in 2005.
Exports increased by 4.0% while imports increased by 1.9%.
Government spending was flat as a 2.0% increase in federal spending completely offset a 1.3% decline in state and local expenditures.
In all, the GDP report was relatively strong and there were few surprises. The data clearly show that the U.S. is not in a recession and that the likelihood of entering one in the next few months is low.
Every sector, with the exception of changes in private inventories, was in the black. After subtracting out the inventory slowdown, final sales of real GDP increased 3.6% in the third quarter. That was two percentage points greater than the final sales increase in Q2 2011 and the largest increase since Q4 2010.
Personal consumption expenditures increased 2.4% on healthy growth in durable (+4.1%) and services (+3.0%) demand.
Nonresidential investment increased 16.3% as nonresidential structures investment increased 13.3% and equipment and software spending increased 17.4%.
Residential construction was up 2.4% and posted its first consecutive increase since the third and fourth quarters in 2005.
Exports increased by 4.0% while imports increased by 1.9%.
Government spending was flat as a 2.0% increase in federal spending completely offset a 1.3% decline in state and local expenditures.
