US Bureau of Economic Analysis (BEA) report on Core PCE Price Index

US Q3 GDP Growth Revised Up to 3.1%; Initial Jobless Claims Drop to 220,000

Dec 19, 2024, 01:31 PM

The US economy grew at an annualized rate of 3.1% in the third quarter of 2024, exceeding expectations of 2.8% and up from the prior estimate of 2.8%. This is an increase from the 3.0% growth recorded in the second quarter, marking the strongest economic growth since the fourth quarter of 2023. The upward revision was driven by stronger consumer spending and business investment. Personal consumption expenditures were revised up to a 3.7% increase from 3.5%. The GDP Price Index remained at 1.9%, matching expectations, while PCE Prices increased by 1.5%. The Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred inflation gauge, rose 2.2% in the third quarter, slightly above expectations of 2.1%. Meanwhile, initial jobless claims fell by 22,000 to 220,000 for the week ending December 14, below the expected 230,000 and marking the largest weekly drop since June 2023. This data pertains to the December Non-Farm Payroll survey week, indicating continued strength in the labor market. Continuing claims decreased to 1.874 million from 1.886 million.