US' GDP growth leaps to 4.9% in Q3 2023

Several factors contributed to the third-quarter GDP growth, including a rise in consumer spending, private inventory investment, exports, as well as both state and local, and federal government spending. Residential fixed investment also increased. These gains were partly offset by a decrease in non-residential fixed investment. Interestingly, imports, which usually subtract from the GDP calculation, also saw an increase.

Consumer spending growth was chiefly driven by an uptick in the purchase of goods, while the growth in private inventory investment was attributed to increases in manufacturing and retail trade. Current dollar GDP grew 8.5 per cent at an annual rate, or $560.5 billion, reaching a total of $27.62 trillion. The price index for gross domestic purchases rose 3 per cent, up from 1.4 per cent in the previous quarter, as per the Bureau of Economic Analysis.

In terms of personal income, current-dollar personal income increased by $199.5 billion in the third quarter. Disposable personal income rose by $95.8 billion, or 1.9 per cent, but real disposable personal income saw a decrease of 1 per cent. Personal savings also witnessed a decline, standing at $776.9 billion, down from $1.04 trillion in the second quarter. The personal saving rate dropped to 3.8 per cent, compared to 5.2 per cent in the preceding quarter.

Fibre2Fashion News Desk (DP)