Highlights of the Q3 GDP report

  • Prior was +3.1%
  • Highlights of the advance report
  • Personal consumption +2.3% vs +2.4% initially
  • Prior personal consumption +3.3%
  • GDP price index +1.5% vs +2.2% initially
  • GDP deflator +2.1% vs +2.1% initially
  • Core PCE +1.4% vs +1.3% initially

In the early look, there are no big shifts from the initial reading.

  • Final sales +2.5% vs +2.3% initially
  • Consumer spending +2.3%
  • Consumer spending on durables +8.1%
  • Business investment +4.7% vs +3.9% initially
  • Investment in equipment +10.4% vs +8.6% initially
  • Investment in IP +5.8% vs +4.3% initially
  • Home investment -5.1% vs -6.0% initially
  • Business investment in structures -6.8% vs -5.2% initially
  • GDP ex motor vehicles +3.7% vs +3.5% initially
  • Exports +2.2%
  • Imports -1.1%
  • Inventories add 0.80 pp to GDP vs 0.73 pp initially

The improvement in business investment is a positive sign looking ahead.