WASHINGTON, Dec. 22 — The US real gross domestic product (GDP) growth in the third quarter of 2023 was revised down to an annual rate of 4.9 per cent in its third and final estimate, the Commerce Department reported on Thursday, reported Xinhua.
In the “advance” estimate, US GDP in the third quarter grew by an annual rate of 4.9 per cent, and the figure was revised up to 5.2 per cent in the second estimate.
The update primarily reflected a downward revision in consumer spending. Imports, which are a subtraction in the calculation of GDP, were revised down.
The increase in real GDP reflected increases in consumer spending, private inventory investment, exports, state and local government spending, federal government spending, residential fixed investment, and nonresidential fixed investment. Imports increased.
In the second quarter, real GDP increased by 2.1 per cent.
Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected an upturn in exports and accelerations in consumer spending and private inventory investment that were partly offset by a deceleration in nonresidential fixed investment.
In a recent analysis, Wells Fargo economists estimated that real GDP in the United States grew 2.4 per cent in 2023.
“But there are unmistakable signs that momentum in the economy is downshifting, and cracks are beginning to appear in the household sector,” the analysis noted.
“We readily acknowledge, however, that the economy could achieve a ‘soft landing’ in 2024. But even if an economic contraction is avoided, the pace of real GDP growth over the next few quarters likely will be sub-trend due to the restrictive stance of monetary policy,” the analysis said.
— Bernam
