US economic growth revised up to 2.3% for Q3

By Ovunc Kutlu

ANKARA (A) – US economic growth was revised to an annual rate of 2.3% for the third quarter, according to the Commerce Department’s third and final reading released on Wednesday.

While the first reading was 2%, the second reading made last month put the figure at 2.1%. The market expectation for the third reading was 2.1%.

The US’ real gross domestic product (GDP) increased 6.7% in the second quarter.

Amid the COVID-19 pandemic, the American economy contracted 31.4% in the second quarter of 2020 before recovering 33.4% in the third quarter, but shrunk 3.5% overall in 2020, marking its worst annual drop since 1946.

The GDP, based on the current dollar standing, increased by $461.3 billion in the July-September period to $23.2 trillion at an annual rate, it said.

It rose by $702.8 billion, or 13.4%, in the second quarter from the same period a year ago, the data showed.

In the third quarter, “the PCE [Personal Consumption Expenditures] price index increased 5.3%, compared with an increase of 6.5%. Excluding food and energy prices, the PCE price index increased 4.6%, compared with an increase of 6.1%,” the statement said.