The U.S. Bureau of Economic Analysis (BEA) has revised upward its estimate of gross domestic product (GDP) growth by one tenth of a percent to 0.8%, according to the third estimate of the data released by the agency on Thursday.
In this way, the United States left the technical recession it had entered in the second quarter, when the economy contracted by 0.1%, after having seen a 0.4% drop in the first three months of the year. According to the consensus of economists, the term technical recession refers to the economic situation that occurs after two consecutive quarters of economic contraction.
The BEA has explained that the rebound in activity between July and September reflected increases in exports, consumer spending, nonresidential fixed investment, state and local government spending, and federal government spending, which were partially offset by declines in residential fixed investment and private inventory investment.
On a purely annualized basis, the Bureau’s preferred way of presenting the data, U.S. GDP rose 3.2% in the third quarter of the year, an upward revision of three-tenths of a point from the last published estimate. The second quarter saw an annualized decline in GDP of 0.6%, while the decline during the first quarter was 1.6%.
Meanwhile, the personal consumption expenditures price index increased by 4.3% in the third quarter, unchanged from the previous estimate, although excluding the impact of food and energy prices, the index rose by 4.7%, one tenth of a percentage point higher than estimated.
Source: (EUROPA PRESS)
