U.S. GDP grows 3% in Q3 2017

In addition to continued growth in gross domestic product (GDP), new orders for manufactured durable goods rose $5.1 billion to $238.7 billion last month, according to data from the U.S. Bureau of Economic Analysis and Census Bureau.    Real gross domestic product (GDP) increased at an annual rate of 3.0 percent in the third quarter of 2017, according to an “advance” estimate released Oct. 27 by the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA).
   The increase in real GDP in the third quarter reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, nonresidential fixed investment, exports, and federal government spending, according to the BEA.
   “These increases were partly offset by negative contributions from residential fixed investment and state and local government spending,” the bureau explained in a statement regarding the statistics. Imports, which are a subtraction in the calculation of GDP, decreased, according to data.
   Third quarter deceleration in real GDP growth primarily reflected decelerations in PCE, nonresidential fixed investment, and exports that were partly offset by an acceleration in private inventory investment and a downturn in imports, according to the report.
   Data also show that current-dollar GDP rose 5.2 percent, or $245.5 billion, in the third quarter to $19,495.5 billion. In the second quarter, current-dollar GDP increased 4.1 percent, or $192.3 billion, statistics show.
   The price index for gross domestic purchases increased 1.8 percent in the third quarter, compared with an increase of 0.9 percent in the second quarter, BEA data show. The PCE price index increased 1.5 percent, compared with an increase of 0.3 percent, according to data.
   Excluding food and energy prices, the PCE price index increased 1.3 percent, compared with an increase of 0.9 percent.
   The GDP figures follow data from the U.S. Census Bureau showing that new orders for manufactured durable goods in September increased $5.1 billion or 2.2 percent to $238.7 billion.
   The increase followed a 2.0 percent August rise, and is the third increase in the last four months, the Census Bureau said Oct. 25.
   Excluding transportation, new orders increased 0.7 percent; excluding defense, new orders increased 2.0 percent, Census Bureau statistics show. Transportation equipment, also up three of the last four months, led the increase, $4.0 billion or 5.1 percent to $81.2 billion.
   Shipments of manufactured durable goods in September, which have been up four of the last five months, increased $2.4 billion or 1.0 percent to $240.5 billion, following a 0.7 percent August increase, according to the Census Bureau.
   Transportation equipment, up two of the last three months, led the increase, $1.1 billion or 1.4 percent to $79.7 billion, data show.