US growth revised down again

The US Bureau of Economic Analysis has yet again revised down US GDP growth for the third quarter of the year.

Real GDP was estimated to have increased at 1.8 per cent during the third quarter, down from the previous estimate of 2 per cent and lower than the first estimate of 2.5 per cent.

However, the rate of growth still compares favourably with real GDP growth of 1.3 per cent in the second quarter.

According to the Bureau of Economic Analysis, the rise in GDP for the third quarter was supported by positive contributions from non-residential fixed investment, personal consumption expenditures, exports and federal government spending.

However, these were offset by negative contributions from private inventory investment and state and local government spending.

Final sales of computers added 0.22 percentage points to the third-quarter real GDP up 0.07 from the second quarter.

Elsewhere, motor vehicle output added 0.12 percentage points to third-quarter GDP down 0.1 percentage points from the second quarter.