US economy witnesses robust growth in Q3 2023

The surge in real GDP was driven by multiple factors including consumer spending, private inventory investment, exports, and both state and local, as well as federal government spending. Notably, the third quarter saw an upturn in exports and accelerations in consumer spending and private inventory investment, which were somewhat balanced by a slowdown in non-residential fixed investment. The period also witnessed an increase in imports, as per the bureau.

In current dollar terms, the GDP grew by 8.3 per cent at an annual rate, or $547.1 billion, reaching a total of $27.61 trillion. This figure was a slight downward revision of $34.3 billion from the previous estimate.

The price index for gross domestic purchases saw an increase of 2.9 per cent in the third quarter, which was a minor downward revision from the previous estimate. The personal consumption expenditures (PCE) price index also increased by 2.6 per cent, with a downward revision of 0.2 percentage points. Excluding food and energy, the PCE price index rose by 2 per cent, revised downward by 0.3 percentage points.

In terms of gross domestic income (GDI) and corporate profits, the report was equally positive. The real GDI saw a steady increase of 1.5 per cent, consistent with previous publications. The average of real GDP and real GDI, a supplemental measure of economic activity, increased by 3.2 per cent, slightly revised downward.

Corporate profits showed notable growth with an increase of $108.7 billion in the third quarter, marking an upward revision of $3 billion. Profits of domestic financial corporations grew by $9 billion, despite a downward revision. Nonfinancial corporations saw an increase of $90.8 billion, and rest-of-the-world profits grew by $8.8 billion, albeit with some downward revisions.

From an industry perspective, private goods-producing industries increased by 10.2 per cent, contributing significantly to the GDP growth. Nondurable goods manufacturing was a leading contributor within this sector.

Furthermore, real gross output, which measures industry sales and receipts, increased by 3.5 per cent in the third quarter. This reflected a 4 per cent increase for private goods-producing industries, underlining the overall robust health of the US economy in this period.

Fibre2Fashion News Desk (DP)