REAL GROSS domestic product increased 2 percent in the third quarter, according to the second estimates of the national income and product accounts by the U.S. Bureau of Economic Analysis. The second estimate of real GDP growth was revised down half a percentage point from the advance estimate, reflecting downward revisions to inventory investment, nonresidential fixed investment, and consumer spending that were partly offset by a downward revision to imports.
During the second quarter, real GDP increased 1.3 percent. Prices of goods and services purchased by U.S. residents increased 1.9 percent in the third quarter, 0.1 percentage point less than in the advance estimate. During the second quarter, prices increased 3.3 percent. Energy prices and food prices decelerated in the third quarter. Excluding food and energy, gross domestic purchases prices increased 1.8 percent after increasing 2.7 percent. Real disposable personal income decreased 2.1 percent during the third quarter, 0.4 percentage point more of a decrease than in the advance estimate. In the second quarter, it decreased 0.5 percentage point (revised). The larger decrease reflected a sharp deceleration in current-dollar DPI, which was revised down 0.4 percentage point from the advance estimate. The downward revision to current-dollar DPI reflected a downward revision to personal income and a small upward revision to personal current taxes.
The personal saving rate was 3.8 percent during the third quarter, 0.3 percentage point less than in the advance estimate. In the second quarter, it was 4.8 percent (revised).
Real gross domestic income rose 0.4 percent in the third quarter after rising 0.2 percent in the second quarter. Corporate profits increased $39.8 billion after increasing $61.2 billion.