US GDP Grows 2.8% in Q3, Slightly Less Than in Previous Quarter
Corporate profits decline amid mixed economic trends
The U.S. economy grew at an annual rate of 2.8 percent in the third quarter of 2024, according to the "second" estimate released by the Bureau of Economic Analysis (BEA). This matches last month's initial estimate and shows a slight slowdown from the 3 percent growth reported in Q2 2024.
Key Drivers of GDP Growth
Increases in consumer spending, exports, federal government spending, and non-residential fixed investment drove the expansion of GDP in the third quarter. But a downturn in private inventory investment and a larger decline in residential fixed investment contributed to a lower pace of growth compared to the previous quarter.
Revised data also revealed downward adjustments to exports and consumer spending, while imports—which are subtracted from GDP—accelerated. On the positive side, upward revisions to private inventory investment and nonresidential fixed investment partially offset these trends.
