Third-Quarter GDP Revised Slightly Lower in 3rd Estimate: What's Next?

Mish

In its third and final estimate of the third-quarter GDP, the economy grew at 3.2%. The revision is statistical noise.

The BEA reports Third-Quarter 2017 GDP at 3.2%, down from 3.3% in the second estimate.

Details

  • Real gross domestic product (GDP) increased at an annual rate of 3.2 percent in the third quarter of 2017.
  • Real gross domestic income (GDI) increased 2.0 percent in the third quarter, compared with an increase of 2.3 percent in the second.
  • The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 2.6 percent in the third quarter, compared with an increase of 2.7 percent in the second quarter.

GDP Revision History

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Contributions Part 1

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Contributions Part 2

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Major Contributions

  • PCE: 1.49 Down from 2.24
  • Services : 0.52 Down from 1.08
  • Nonresidential: 0.58 Down from 0.82
  • Change in Inventories: 0.79 Up from 0.12

Looking Ahead

Residential investment subtracted 0.18 from third-quarter GDP. It rates to add in the fourth-quarter of 2017 and first-quarter of 2018, barring construction revisions.

Mike "Mish" Shedlock

Comments (3)
No. 1-3
KidHorn
KidHorn

I wouldn't be shocked to find out the GDP numbers are goal seeked so the present administration can brag about how we have 3% growth. Something Obama never achieved in any given year.

channelstuffing
channelstuffing

driven by what?errr let me guess! MOAR gov't spending (borrowing),soaring deficits,soaring growth of gov't/police state.soaring deficit/dept will force trump to declare a state of emergency as big gov't breaches the 2trillion mark in annual deficits omg!

Stuki
Stuki

All so called economic metrics, GDP included, are nowadays simply stand-ins for debt growth. Debt growth increases inflation, while fashionable metrics of “inflation” are designed specifically to prevent this growth from registering. Resulting in higher debt providing the illusion of growth.

The “Tax Plan,” and a GOP administration in general, at least per popular superstition, “benefits” the wealthy. Who are the only ones left with much room to grow debt. As well as the only real (relative) beneficiaries of debt growth. So the Tax plan, like the GOP win, encourages those to take on more debt. Increasing GDP as measured.


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