U.S. economy rises more than expected in Q3

The Commerce Department released on Wednesday its "advance" estimate for the U.S. gross domestic product (GDP) for the third quarter of 2019, which revealed the U.S. economy grew more than expected in the reviewed period.

According to the estimate, the U.S. real GDP increased at an annual rate of 1.9 percent q-o-q last quarter, after rising by 2.0 percent q-o-q in the second quarter of 2019.

Economists had expected GDP to grow by 1.6 percent.

According to the report, the gain in real GDP in the third quarter reflected positive contributions from personal consumption expenditures (PCE), federal government spending, residential fixed investment, state and local government spending, and exports, which, however, were partly offset by negative contributions from nonresidential fixed investment and private inventory investment. Imports, which are a subtraction in the calculation of GDP, rose.

At the same time, the deceleration in real GDP growth in the third quarter reflected slowdowns in PCE, federal government spending, and state and local government spending, and a larger decline in nonresidential fixed investment. These movements, however, were partly offset by a smaller drop in private inventory investment, and upturns in exports and in residential fixed investment.