US GDP growth falls short of consensus
Press Hub UCapital
Share:
The U.S. economy continued its expansion in the third quarter, albeit at a slower pace than in the second quarter and below market forecasts, as reported by the Bureau of Economic Analysis (BEA) on Wednesday.
GDP represents the total value of goods and services produced within the national economy, minus the value of goods and services used in production. The BEA emphasized that this initial estimate is based on incomplete data and may be revised. The personal consumption expenditure (PCE) price index, which measures price changes in goods and services purchased by individuals, rose by 1.5% in Q3, down from a 2.5% increase in the second quarter. The core PCE index, which excludes food and energy prices, rose by 2.2%, slightly above the 2.1% market consensus, but lower than the 2.8% increase in Q2.
US GDP growth falls short of consensus
According to preliminary estimates from the BEA, real gross domestic product (GDP) grew at an annual rate of 2.8% in Q3 2024, slightly below the 3% growth expected by analysts cited by FXStreet. This follows a 3.0% increase in real GDP in the previous quarter. The BEA noted that the GDP growth was primarily driven by increases in consumer spending, exports, and federal government spending. Consumer spending rose in both goods and services, led by non-durable goods (notably prescription drugs) and motor vehicles, while healthcare, food services, and accommodation topped service sector contributions.The increase in federal government spending was mainly due to higher defense expenditures.
GDP represents the total value of goods and services produced within the national economy, minus the value of goods and services used in production. The BEA emphasized that this initial estimate is based on incomplete data and may be revised. The personal consumption expenditure (PCE) price index, which measures price changes in goods and services purchased by individuals, rose by 1.5% in Q3, down from a 2.5% increase in the second quarter. The core PCE index, which excludes food and energy prices, rose by 2.2%, slightly above the 2.1% market consensus, but lower than the 2.8% increase in Q2.