Real gross domestic product (GDP) increased at an annual rate of 2.8 percent in the third quarter of 2024, according to the “advance” estimate. In the second quarter, real GDP increased 3.0 percent. The increase in the third quarter primarily reflected increases in consumer spending, exports, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
- The increase in consumer spending reflected increases in both goods and services. Within goods, the leading contributors to the increase were other nondurable goods (led by prescription drugs) and motor vehicles and parts (led by used light trucks). Within services, the leading contributors to the increase were health care (led by outpatient services) as well as food services and accommodations.
- The increase in exports primarily reflected an increase in goods (led by capital goods, excluding automotive).
- The increase in federal government spending primarily reflected an increase in defense spending.
- The increase in imports primarily reflected an increase in goods (led by capital goods, excluding automotive).
Compared to the second quarter, the deceleration in real GDP primarily reflected a downturn in inventory investment and a larger decrease in housing investment. These movements were partly offset by accelerations in exports, consumer spending, and federal government spending. Imports accelerated.
Prices
Gross domestic purchases prices, the prices of goods and services purchased by U.S. residents, increased 1.8 percent in the third quarter, after increasing 2.4 percent in the second quarter. Excluding food and energy, prices increased 2.3 percent, after increasing 2.6 percent.
Personal consumption expenditures (PCE) prices increased 1.5 percent in the third quarter, after increasing 2.5 percent in the second quarter. Excluding food and energy, the PCE “core” price index increased 2.2 percent, after increasing 2.8 percent.
Personal income and saving
Real disposable personal income (DPI)— personal income adjusted for taxes and inflation—increased 1.6 percent in the third quarter after increasing 2.4 percent in the second quarter.
Current-dollar DPI increased 3.1 percent in the third quarter, following an increase of 5.0 percent in the second quarter. The increase in the third quarter primarily reflected an increase in compensation.
Personal saving as a percentage of DPI was 4.8 percent in the third quarter, compared with 5.2 percent in the second quarter.
For more information, read the full release.