The US economy grew at an annualized rate of 3.1% in the third quarter of 2024, up from the second estimate of 2.8% and exceeding the 3% growth recorded in Q2.
US GDP growth revised up in Q3
This marks the highest growth rate of the year. Personal spending saw its strongest increase since Q1 2023, rising 3.7% compared to 3.5% in the second estimate, driven by a 5.6% jump in goods consumption (unchanged from the prior estimate) and robust service spending (2.8% vs. 2.6%). Fixed investment also outperformed expectations, growing 2.1% versus the previously estimated 1.7%. Investment in equipment surged 10.8% (up from 10.6%), while declines were noted in structures (-5% vs. -4.7%) and residential investment (-4.3% vs. -5%).
Government spending was also upwardly revised
Government spending growth was revised upward to 5.1% (from 5%). Meanwhile, the negative contribution from net trade lessened (-0.43 percentage points vs. -0.57 points previously), with upward revisions to both exports (9.6% vs. 7.5%) and imports (10.7% vs. 10.2%). However, private inventories weighed on growth, subtracting 0.22 percentage points compared to a 0.11-point reduction in the second estimate.
