The US economy grew 1.9 per cent (seasonally adjusted annualized rate, chained 2012 dollars) in Q3 2019, according to the advance estimate by the US BEA. Growth was slower than the 2.0 per cent pace in the previous quarter due to decelerations in personal consumption, government spending, and a larger decline in non-residential investment. These movements were partially offset by accelerations in exports and residential investment and a smaller decrease in private inventories. Since Q3 2018, US real GDP has grown by 2.0 per cent.

The growth in Q3 2019 reflects positive contributions from personal consumption, government spending, residential investment and exports while there were negative contributions from non-residential fixed investment and inventories, as well as an increase in imports.

Personal consumption expenditure growth decelerated in Q3 with an increase of 2.9 per cent (annualized rate) compared to 4.6 per cent growth in the previous quarter. Gains in both durable and nondurable goods led to growth of 5.5 per cent among goods expenditures while services were up 1.7 per cent. Non-residential investment declined 3.0 per cent with declines in structures and equipment. Residential investment grew 5.1 per cent following six consecutive quarterly declines. Exports rose 0.7 per cent with increased goods exports (1.6 per cent) offsetting a decline in services (-0.9 per cent). Imports rose 1.2 per cent compared to the previous quarter.

US nominal GDP growth (including the impacts of rising prices) was 3.5 per cent in Q3, compared to 4.7 per cent growth reported in the second quarter.  The personal consumption expenditure price index increased 1.5 per cent, following a 2.2 per cent increase last quarter.

Source: US Bureau of Economic Analysis