U.S. Q3 GDP Revised to 3.1%, Highest Since Q4 2023, Boosted by Consumer Spending

Dec 19, 2024, 01:38 PM

The U.S. economy grew at an annualized rate of 3.1% in the third quarter of 2024, according to revised figures from the Commerce Department, exceeding economists' expectations of 2.8% growth. This marks an upward revision from the previous estimate of 2.8% and represents the strongest GDP growth since the fourth quarter of 2023. The acceleration was driven by stronger consumer spending, which increased by 3.7%, reaching its highest level since the first quarter of 2023. Business fixed investment rose by 2.1%, while government spending increased by 5.1%. Residential investment declined by 4.3%. Inventories reduced GDP growth by 0.2 percentage points, and trade reduced it by 0.4 percentage points. The GDP price index remained steady at 1.9%, matching forecasts. Core PCE prices, a key measure of inflation, rose by 2.2%, slightly above expectations of 2.1%, while headline PCE inflation was 2.3% year-over-year. Real final sales to domestic purchasers were revised up to a 3.4% gain, indicating robust underlying domestic demand despite higher interest rates.