America is just killing it.
Q3 GDP growth was just revised up to 5.0% from last month’s estimate of 3.9%.
This is the fastest pace of growth since Q3 2003. This was also much stronger than the 4.3% expected by economists.
“The increase in real GDP in the third quarter primarily reflected positive contributions from PCE, nonresidential fixed investment, federal government spending, exports, state and local government spending, and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, decreased,” the BEA said.
Personal consumption growth was revised up to 3.2% from 2.2%.
Services spending growth accelerated to a 2.5% rate, adding a whopping 1.2 percentage points to GDP growth.
Real final sales, that is GDP minus the change in private inventories, jumped 5.0%.
“The solid labour market performance should translate into further income gains going forward, which should continue to support household spending in Q4, along with extra income generated from lower gasoline price,” BNP Paribas’ Bricklin Dwyer said.
Here’s a look at growth by line item.
Here’s how much each line item contributed to top line growth.