The third estimate of Q3 annualized GDP growth in the United States was revised to 3.1% from the 2.7% that was reported in the second estimate. Expectations had been for an upward revision though to a more modest 2.8%. In the second quarter GDP expanded by 1.3%. The upward revision resulted from increased strength in a number of expenditure areas. Q3 consumer spending growth was revised up to 1.6% from 1.4% largely reflecting greater strength in household spending on services.
There was also greater strength in exports (1.9% versus 1.1%) and greater weakness in imports (-0.6% versus 0.1%) resulting in net exports adding an additional 0.2 percentage points to the Q3 GDP growth rate. Finally growth in government spending was revised up to 3.9% from 3.5% which provided the final 0.1 pp boost to the Q3 GDP growth rate.
The first estimate of Q3 GDP showed an annualized gain of only 2.0%. This was subsequently raised to 2.7% in the second estimate and could solely be accounted for by an upwardly revised estimate of inventory accumulation. In this final estimate of Q3 GDP, the inventory component saw negligible revisions.
In a separate report out this morning, jobless claims for the week ending December 15 rose as expected to 361,000 relative to 344,000 the previous week (revised from an initially estimated 343,000). Expectations going into the report were for a gain in the most recent week to 360,000. On a four-week moving average basis, jobless claims dropped significantly to 367,750 relative to 381,500 last week and 397,750 a month ago.
