BEA Releases Third Estimate of Third Quarter GDP and Revised Estimate of Third Quarter Corporate Profits (Dec. 2018)
Real gross domestic product (GDP) increased at an annual rate of 3.4 percent in the third quarter of 2018, according to the “third” estimate released by the Bureau of Econoimc Analysis. In the second quarter, real GDP increased 4.2 percent. The GDP estimate released today is based on more complete source data than were available for the “second” estimate issued last month. In the second estimate, the increase in real GDP was 3.5 percent. With this third estimate for the third quarter, personal consumption expenditures (PCE) and exports were revised down, and private inventory investment was revised up; the general picture of economic growth remains the same. The increase in real GDP in the third quarter reflected positive contributions from exports and residential fixed investment. Imports, which are a subtraction to the calculation of GDP, increased. The deceleration in real GDP growth in the third quarter from the second primarily reflected a downturn in exports and decelerations in nonresidential fixed investment and PCE. Imports increased in the third quarter after decreasing in the second. These movements were partly offset by an upturn in private inventory investment.