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Thursday, December 19, 2024 Contact: Connie O’Connell, (301) 278-9003 Gross Domestic Product (Third Estimate), Corporate Profits (Revised Estimate), and GDP by Industry, Third Quarter 2024 Real gross domestic product (GDP) increased at an annual rate of 3.1 percent in the third quarter of 2024, according to the “third” estimate. In the second quarter, real GDP increased 3.0 percent. The increase in the third quarter primarily reflected increases in consumer spending, exports, business investment, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased. Percentage point contributions Contributions to Percent Change in Real GDP, Third Quarter 2024 Real GDP increased 3.1 percent 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 Real GDP, percent change Consumer spending Exports * Business investment Federal State and local Housing government government investment spending spending Inventory investment Imports Note. Imports are a subtraction in the calculation of GDP; thus, an increase in imports results in a negative contribution to GDP. U.S. Bureau of Economic Analysis Seasonally adjusted annual rates • 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 contributor to the increase was health care (both outpatient services and hospitals). • The increase in exports primarily reflected an increase in goods (led by capital goods, excluding automotive). • The increase in business investment primarily reflected an increase in equipment (led by information processing as well as transportation equipment). • 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). BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and regional economic data—are available at www.bea.gov. Email alerts are also available. Compared to the second quarter, the acceleration in real GDP primarily reflected accelerations in exports, consumer spending, and federal government spending. These movements were partly offset by a downturn in inventory investment and a larger decrease in housing investment. Imports accelerated. Prices Gross domestic purchases prices—the prices of goods and services purchased by U.S. residents— increased 1.9 percent in the third quarter, after increasing 2.4 percent in the second quarter. Excluding food and energy, prices increased 2.4 percent, after increasing 2.6 percent. Quarter-to-Quarter Change in Prices Gross Domestic Purchases Price Index PCE Price Index Gross Domestic Purchases, Excluding Food and Energy PCE, Excluding Food and Energy 4.0 3.5 Percent Change 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2023:Q2 2023:Q3 2023:Q4 2024:Q1 U.S. Bureau of Economic Analysis 2024:Q2 2024:Q3 Seasonally adjusted annual rates 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. Current-dollar DPI increased 2.7 percent in the third quarter, following an increase of 3.6 percent in the second quarter. The increase in the third quarter primarily reflected increases in compensation and personal current transfer receipts. Quarter-to-Quarter Change in Disposable Personal Income Real DPI (chained) Current-Dollar DPI 10 9 8 Percent Change Personal income and saving Real disposable personal income (DPI)— personal income adjusted for taxes and inflation—increased 1.1 percent in the third quarter after increasing 1.0 percent in the second quarter. 7 6 5 4 3 2 1 0 2023:Q4 U.S. Bureau of Economic Analysis 2024:Q1 2024:Q2 2024:Q3 Seasonally adjusted annual rates Personal saving as a percentage of DPI was 4.3 percent in the third quarter, compared with 4.9 percent in the second quarter. Page 2 of 4 Corporate profits from current production Profits decreased 0.4 percent at a quarterly rate in the third quarter after increasing 3.6 percent in the second quarter. • Profits of domestic nonfinancial corporations increased 0.9 percent after increasing 4.2 percent. 5.0 4.0 Percent Change • Profits of domestic financial corporations increased 0.5 percent after increasing 7.0 percent. Quarter-to-Quarter Change in Corporate Profits 3.0 2.0 1.0 0.0 -1.0 -2.0 2023:Q2 2023:Q3 2023:Q4 2024:Q1 2024:Q2 2024:Q3 U.S. Bureau of Economic Analysis • Profits from the rest of the world (net) decreased 8.9 percent after decreasing 3.8 percent. Seasonally adjusted quarterly rates Corporate profits increased 6.0 percent in the third quarter from one year ago. Real gross domestic product by industry In the third quarter, the value added of private goods-producing industries increased 1.5 percent, private services-producing industries increased 3.6 percent, and government increased 2.1 percent. Overall, 16 of 22 industry groups contributed to the third-quarter increase in real GDP. Contributions to Percent Change in Real GDP by Industry Group, 2024:Q3 Real GDP increased 3.1 percent Private goods Retail trade Health care and social assistance Information Professional, scientific, and technical services Wholesale trade State and local government Durable goods manufacturing Nondurable goods manufacturing Transportation and warehousing Real estate and rental and leasing Educational services Management of companies and enterprises Other services, except government Federal government Finance and insurance Mining Accommodation and food services 0.00 Utilities -0.01 Construction -0.01 Arts, entertainment, and recreation -0.03 Administrative and waste management services -0.06 Agriculture, forestry, fishing, and hunting -0.07 Private services Government 1.10 0.35 0.33 0.29 0.19 0.19 0.16 0.16 0.14 0.13 0.05 0.04 0.04 0.04 0.03 0.02 Percentage points U.S. Bureau of Economic Analysis Seasonally adjusted annual rates Page 3 of 4 Updates to GDP The update from the “second” estimate primarily reflected upward revisions to exports and consumer spending that were partly offset by a downward revision to inventory investment. Imports were revised up. For additional details on the estimates, refer to the Technical Note. Page 4 of 4