Dive into the advance estimate of the United States GDP for Q3 2024, with growth at 2.8%. Here are some of the biggest drivers of that growth and implications for the economy.
Third Quarter 2024 GDP Report: Growth and Economic Insights
Gross Domestic Product, Third Quarter 2024 (Advance Estimate)
The U.S. economy has shown resilience in the third quarter of 2024 as the Bureau of Economic Analysis reported real gross domestic product at an annual rate of 2.8%. This was at a growth rate of 3.0% for the previous quarter.
The first estimate for Q3, which was incomplete, could be revised. The second estimate will come out on November 27, 2024. It covers more comprehensive data.
Principal Series:
GDP Growth
GDP Growth Factors
Personal Spending
Exports
Federal Government Spending
Key components of personal spending were nondurable goods, which included prescriptions drugs and motor vehicles.
Other services, especially healthcare as well as food services, were also key subsectors. In terms of growth in exports, capital goods dominated overall while defense spending boosted gains in federal government expenditure
Both imports and economic factors thus were on the rise also – increases in goods, major of which are capital goods with the exception of those automobile-related.
Compared to the preceding quarter, this slowdown of GDP was very largely due to a retreat in private inventory investment, as well as a steeper retreat in residential fixed investment. Still, these pullbacks were partially balanced by additional growth in exports, consumption expenditures, and government consumption expenditures.
GDP in Current Dollars:
Current-dollar GDP grew 4.7 percent over the year, reaching $29.35 trillion, compared with an annual increase of 5.6 percent in Q2.
Price Index and Inflation:
Gross domestic purchases price index increased 1.8 percent, up from 2.4 percent in the previous quarter; PCE price index rose 1.5 percent, compared with 2.5 percent a year ago. Excluding food and energy, the PCE price index increased 2.2 percent.
Personal Income
Current-dollar personal income rose $221.3 billion in Q3 compared with an increase of $315.7 billion in Q2. This acceleration primarily reflected an acceleration in compensation.
Disposable personal income was up $166.0 billion in the period, or 3.1%, but real disposable personal income is up 1.6%.
Personal Saving Analysis:
Personal saving came in at $1.04 trillion in Q4, down from a revised $1.13 trillion in Q3 2012, representing a personal saving rate of 4.8%.
Recommendation
According to the advance estimate, growth in the United States is observed for Q3 2024, which is primarily driven by consumer spending and federal spending. Residential investments have a small decline there, while other indicators continue their performance level. Once it matures with a second estimate from the comprehensive data, another estimate may be expected shortly.
Conclusion
The advance estimate of Q3 2024 indicates that the U.S. economy has a steady growth track. The growth will be supported by consumer spending and federal expenditures. Some sectors, however, had difficulty in residential investment. All indicators are nonetheless resilient. The following second estimate will further paint a picture of the performance of the economy, given that more complete data are at hand.
Frequently Asked Questions
Q1: GDP growth for Q3 2024?
A1: Advance estimate for Q3 2024 GDP growth rate at 2.8%.
Q2: What were the factors that pushed the GDP up?
A2: The factors pushing the GDP up were consumer spending, exports, and federal government spending.
Q3: When will the second estimate of Q3 GDP be released?
A3: The second estimate will be released on November 27, 2024.
Q4: How did personal income change in Q3 2024?
A4 Current-dollar personal income increased by $221.3 billion in Q3 2024.