Third Quarter Real GDP Revised Up Again to 3.1 Percent

By December 20, 2012Economy

The Bureau of Economic Analysis revised its figure for third quarter real gross domestic product (GDP) to 3.1 percent, up from last month’s estimate of 2.7 percent and the original estimate of 2.0 percent. This reflects higher consumer spending on services, increased net exports, and a now-positive contribution from state and local spending.

Overall, the consumer, housing, end-of-fiscal year federal government spending, inventory replenishment, and net exports were the main contributors to the faster pace of growth in the third quarter. The primary drag was nonresidential fixed investment, with manufacturers and other businesses anxious about slowing sales and the fiscal cliff. This uncertainty led to business investment subtracting 0.23 percentage points from real GDP, with reduced spending on equipment and software the primary factor.

This sluggishness has continued in the current (or fourth) quarter, with growth expected to slow to around 2 percent or less.

Chad Moutray is the chief economist, National Association of Manufacturers.

Chad Moutray

Chad Moutray

Chad Moutray is chief economist for the National Association of Manufacturers (NAM) and the Director of the Center for Manufacturing Research for The Manufacturing Institute, where he serves as the NAM’s economic forecaster and spokesperson on economic issues. He frequently comments on current economic conditions for manufacturers through professional presentations and media interviews. He has appeared on Bloomberg, CNBC, C-SPAN, Fox Business and Fox News, among other news outlets.
Chad Moutray

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