The U.S. Bureau of Economic Analysis reported that the real gross domestic product (GDP) increased at an annual rate of 3.1 percent in the third quarter of 2024. This marks a slight rise from the second quarter's 3.0 percent increase.
This latest GDP estimate incorporates more complete data than the "second" estimate released last month, which had indicated a 2.8 percent growth. The update mainly reflects upward revisions to exports and consumer spending, although these were partly offset by a downward revision to private inventory investment. Imports, which are subtracted in GDP calculations, were revised upwards.
The increase in real GDP was driven by rises in consumer spending, exports, nonresidential fixed investment, and federal government spending. Compared to the second quarter, there was an acceleration in exports and consumer spending alongside federal government spending. However, this was partly countered by a downturn in private inventory investment and a larger decrease in residential fixed investment.
Current dollar GDP rose by 5.0 percent at an annual rate, reaching $29.37 trillion—a $20.6 billion upward revision from the previous estimate.
The price index for gross domestic purchases increased by 1.9 percent in the third quarter, consistent with prior estimates. The personal consumption expenditures (PCE) price index rose by 1.5 percent as previously estimated; excluding food and energy prices, it saw an upward revision to 2.2 percent.
In terms of personal income, current-dollar personal income grew by $191.7 billion during the third quarter—an upward revision of $15.8 billion from earlier estimates—primarily due to increases in compensation and personal current transfer receipts.
Disposable personal income rose by $141.5 billion or 2.7 percent for the quarter, with real disposable personal income seeing a revised increase of 1.1 percent.
Real gross domestic income (GDI) saw a modest increase of 2.1 percent during this period—a slight downward adjustment from previous figures—while corporate profits experienced a decline of $15 billion.
Industry-specific data showed that private goods-producing industries increased output by 1.5 percent; private services-producing industries saw a rise of 3.6 percent; and government output increased by 2.1 percent.
Real gross output across industries rose by 3.2 percent overall for the third quarter with contributions from both goods-producing and services-producing sectors as well as government activities.