The gross domestic product (GDP) of the United States registered a growth of 4.9% in the third quarter of the year, which represents an expansion rate higher than the 2.1% in the second tranche of 2023, as reported by the Office of Economic Analysis of the Commerce Department’s preliminary estimates for the period
Growth in real GDP reflects increases in consumer spending, private investment in inventories, exports, state and local government spending, and residential fixed investments. These increases were partially offset by a decrease in non-residential fixed investment and an increase in imports.
Compared to the data of the second quarter, the economy showed an acceleration in consumer spending, private investment in inventories, and federal public spending, as well as entering positive territory in exports and residential fixed investment.
For its part, non-residential fixed investment decreased, and spending by the state and local administrations slowed down. Overseas purchases increased over time.
The first estimate of GDP data, recalled by the Office of Economic Analysis, was based on incomplete data “subject to future revisions” by the agency. Therefore, the next estimate of GDP data corresponding to the third quarter of 2023 will be published on November 29, 2023.
The Federal Reserve (Fed) decided on September 20 to stop raising interest rates in the country and left them in the target range of between 5.25% and 5.50%, their highest level since January 2001. However, in the following press conference, the president of the Fed, Jerome Powell, warned that a new increase before the end of the year is not ruled out.
“The majority of members (of the Federal Open Market Committee) believe it is more likely that it will be appropriate to raise rates again at either of the two remaining meetings this year than that it will not be appropriate,” Powell explained, who, in addition, underestimated the impact of that possible increase “in macroeconomic terms.”
The head of the US issuing institute also maintained that “the full effect of the tightening (attack) has not yet shown itself.” Similarly, Powell recalled that, for future meetings, the Fed’s decisions will continue to be based on “data received, the evolution of forecasts, and the risks.”