GDP Up 2% in 3rd Quarter

WASHINGTON (CN) - The national gross domestic product grew 2 percent in the third quarter, according to advanced estimates released Friday by the Commerce Department. In the second quarter, GDP increased 1.7 percent.

Consumer spending increased 2.6 percent from July to September, up from a 2.2 percent increase from April to June.

The slight uptick in the GDP, or total output of goods and services, is attributed to increases in consumer spending and in imports and private inventory investment, or stocks of goods. The increases were offset by a lower rate of residential fixed investment, or homes, apartments and condos, and lower exports.

Imports increased by 17.4 percent in the third quarter, compared with an increase of 33.5 percent last quarter.

Motor vehicle output added 0.42 percentage points to third-quarter GDP growth after subtracting 0.06 percentage points in the second-quarter.

Computer sales added 0.25 percentage points to the change in GDP after adding 0.03 percent to the second-quarter change.

Nonresidential fixed investment, such as factories, restaurants, equipment and software, increased by 9.7 percent in the third quarter, after jumping 17.2 percent in the second quarter. Growth in building investments increased from the second-quarter numbers, while increases in purchases equipment and software decelerated.

Federal government spending increased by 8.8 percent, compared to an increase of 9.1 percent in the second quarter.

Exports increased by 5 percent in the third quarter, compared with an increase of 9.1 percent in the second.

Private businesses increased inventories $115.5 billion in the third quarter, after increasing inventories by $68.8 billion in the second quarter and $44.1 billion in the first.

Disposable personal income increased $43.4 billion, or 1.5 percent, in the third quarter, after increasing $120.9 billion, or 4.4 percent, in the second.

The current market value of the nation's output of goods and services increased 4.2 percent, or $151.5 billion, in the third quarter, to $14.73 trillion.

A second estimate will be released on Nov. 23.

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