Third quarter U.S. gross domestic product (GDP) was slightly revised to 3.4 on Friday, the third estimate nearly unchanged from the 3.5 percent second estimate.
Real gross domestic product was revised a third time slightly Friday to 3.4 percent after a second Bureau of Economic Analysis (BEA) Q3 estimate of 3.5.
“Real gross domestic income (GDI) increased 4.3 percent in the third quarter, compared with an increase of 0.9 percent in the second quarter,” according to the BEA announcement. Real GDP and real GDI averaged “a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 3.8 percent in the third quarter, compared with an increase of 2.5 percent in the second quarter.”
“Profits of domestic nonfinancial corporations increased $83.0 billion, compared with an increase of $53.0 billion” compared to a decrease in profits of domestic financial corporations of $6.1 billion. BEA noted domestic financial corporations saw an increase in profits of $16.5 billion in the second quarter.
The BEA release explained:
The increase in real GDP in the third quarter reflected positive contributions from PCE, private inventory investment, nonresidential fixed investment, federal government spending, and state and local government spending that were partly offset by negative contributions from exports and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
Economists predicted in September when the Commerce Department released second-quarter growth numbers, that the U.S. economy would continue to expand in the third quarter, but at a slower pace. The Third quarter 3.4 percent GDP results fall in line with this prediction.