Economic Buzz: US GDP Expands By 2.6% In Q3

28 Oct 2022 , 08:32 AM

Following two straight quarters of contraction, the Commerce Department released a report on Thursday showing U.S. economic activity rebounded by slightly more than expected in the third quarter. The report said real gross domestic product shot up by 2.6 percent in the third quarter following a 0.6 percent drop in the second quarter and a 1.6 percent slump in the first quarter. The rebound in GDP largely reflected a 2.8 percent boost from trade, as exports soared by 14.4 percent and imports, which are a subtraction in the calculation of GDP, plunged by 6.9 percent. A 1.4 percent increase in consumer spending also contributed the GDP growth, as a 2.8 percent jump in spending on services more than offset a 1.2 percent drop in spending on goods. The Commerce Department said the rebound in GDP also reflected increases in non-residential fixed investment, federal government spending and state and local government spending, while decreases in residential fixed investment and private inventory investment limited the upside.Powered by Commodity Insights