Real US gross domestic product (GDP) increased at an annualised 3.5% in the third quarter of 2014, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 4.6%.
Third-quarter highlights: The deceleration in GDP growth was more than accounted for by inventory investment, which detracted from growth in the third quarter after adding to it in the second quarter.
- Consumer spending decelerated, increasing 1.8% after increasing 2.5%. Spending on nondurable and durable goods both slowed, while services picked up.
- Business investment rose but not as much as in the second quarter. Investment in structures, equipment, and intellectual property products slowed - business investment only increased by 7.2% in the year.
- Exports of goods and services decelerated.
In contrast, imports declined in the third quarter, mainly reflecting a dip in oil imports, after increasing significantly in the second quarter, reflecting downturns in nonautomotive consumer goods and in industrial supplies and materials.
The addition to growth from trade was 1.32%.
Personal income and personal saving: Real disposable personal income (DPI), which adjusts for taxes and inflation, rose 2.7% in the third quarter after increasing 4.4% in the second quarter.
Personal saving as a percentage of DPI increased to 5.5% in the third quarter from 5.4% in the second quarter.
Prices: Prices of goods and services purchased by US residents increased 1.3% in the third quarter after increasing 2.0% in the second quarter.
Prices of energy goods and services turned down in the third quarter, and food prices slowed.
Excluding food and energy, gross domestic purchase prices increased 1.5% in the third quarter after increasing 1.7% in the second quarter.