The second look at Q3 GDP

US Q3 GDP second reading


  • Inventories added 2.13 pp to GDP vs 2.07 pp in first reading
  • Inventories cut -2.62 pp in Q1
  • Exports -0.33 pp
  • Imports -0.83 pp
  • Trade -1.16 pp and there was a 1.14 pp drag in Q2
  • Home investment -0.41 pp
  • Personal consumption added 1.18 pp GDP vs 1.09 in first reading
  • Government spending added 0.16 pp to GDP vs 0.14 pp in first reading

There are no big surprises in the data as soft consumer spending on goods was a drag while services spending didn't return as strong as hoped for because of the delta variant. Notably, the drop in consumer spending on motor vehicles and parts alone was a 2.5 pp drag on growth.