US Economy Grows 3.1 percent in Q3, Surpassing Prior Estimates
This 'third' estimate exceeds the second quarter's growth rate of 3 percent and shows an improvement from the 2.8 percent Q3 growth rate in the second estimate
The U.S. economy grew at an annual rate of 3.1 percent in the third quarter of 2024, outpacing earlier projections, according to the latest data from the U.S. Bureau of Economic Analysis (BEA). This "third" estimate exceeds the second quarter's growth rate of 3 percent and shows an improvement from the 2.8 percent growth rate previously reported in the second estimate for the same period. The latest Department of Labor (DoL) report also shows that unemployment insurance claims fell by 220,000. The Federal Reserve, which has been balancing the imperatives of economic growth and containing inflation, has indicated that it may not cut the interest rates at the same rate as estimated earlier because of economic and political uncertainties.
Detailed Revisions and Key Drivers of Growth
The revised growth rate comes on the back of stronger consumer spending and export activities, with notable adjustments made to the prior data that initially underestimated these areas. Private inventory investments, however, saw a downward revision, slightly tempering the overall increase. This third estimate is informed by more comprehensive source data compared to earlier reports.
