The Commerce Department announces GDP growth of 2.9% at an annualized rate, versus 2.6% initially announced.
US GDP growth in the third quarter was slightly stronger than initially announced, at 2.9% annualized, according to a second estimate released Wednesday by the Commerce Department.
The first estimate of gross domestic product (GDP) growth, published at the end of October, had reported growth of 2.6% on an annual basis, a measure favored by the United States, which it compares with the previous quarter and then projects the evolution on the whole year.
And if we limit ourselves to making a comparison with the previous quarter, as other advanced economies do, growth is 0.7%, against 0.6% in the first estimate.
This upward revision is due to higher consumer spending than initially estimated, as well as investment, government spending and exports.
GDP contracted in the first two quarters of the year, falling by 1.6% and then by 0.6%. Without falling into recession at this stage, however, according to the Biden administration, but also many economists.
They believe that while these two consecutive quarters of declining GDP fit the commonly accepted definition of a recession, the strength, in particular, of the labor market does not allow the world’s largest economy to fit into this box.