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“Real gross domestic product (GDP) increased at an annual rate of 3.5 percent in the third quarter of 2018, according to the “second” estimate,” the Bureau of Economic Analysis reported today.

Key takeaways from the press release

  • In the second quarter, real GDP increased 4.2 percent.
  • With this second estimate for the third quarter, the general picture of economic growth remains the same; upward revisions to nonresidential fixed investment and private inventory investment were offset by downward revisions to personal consumption expenditures (PCE) and state and local government spending.
  • Real gross domestic income (GDI) increased 4.0 percent in the third quarter, compared with an increase of 0.9 percent (revised) in the second quarter.  
  • The price index for gross domestic purchases increased 1.7 percent in the third quarter, compared with an increase of 2.4 percent in the second quarter.
  •  The PCE price index increased 1.5 percent, compared with an increase of 2.0 percent.
  • Excluding food and energy prices, the PCE price index increased 1.5 percent, compared with an increase of 2.1 percent.