US growth rate revised up to 3.1% in Q3 2024

The U.S. economy expanded at a faster-than-expected pace in the third quarter, driven by strong consumer spending and exports.

The Bureau of Economic Analysis showed real Gross domestic product (GDP) grew 3.1% year-on-year (YoY) on an annualized basis, up from the 2.8% in earlier estimates and 3% in the second quarter.

This marks the eighth time in the past nine quarters that growth has exceeded the 2% threshold.

The Commerce Department’s upward revision reflects higher estimates for consumer spending and exports.

These gains were partially offset by a drop in private inventory investment and an increase in imports, which subtract from GDP.

Economic growth in the third quarter was supported by increased federal government spending and stronger exports. However, declines in private inventory investment, fixed residential investment, and higher imports weighed on the overall performance.

Nominal GDP rose 5% YoY, or $358.2 billion, to reach $29.37 trillion in the third quarter. This compares with a 4.7% YoY increase in the earlier estimates.

The personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, remained steady at 1.5%.

Core PCE inflation, which excludes food and energy, was revised slightly higher to 2.2% from 2.1%.