U.S. real gross domestic product (GDP) increased at an annual rate of 2.1% in Q3 2019, according to the third estimate released by the Bureau of Economic Analysis. Revised GDP growth for Q2 2019 was 2%.
The increase in real GDP in Q3 reflected positive contributions from PCE, federal government spending, residential investment, exports, and state and local government spending that were partly offset by negative contributions from non-residential fixed investment and private inventory investment. Imports, which are a subtraction in the calculation of GDP increased too.
The acceleration in real GDP in Q3 reflected a smaller decrease in private inventory investment and upturns in exports and residential fixed investment that were partly offset by decelerations in PCE, federal government spending, and state and local government spending, and a larger decrease in non-residential fixed investment.
Real gross domestic income (GDI) increased 2.1% in the Q3, compared with an increase of 0.9% in the second quarter. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 2.1% in Q3, compared with an increase of 1.4% in Q2.
Current‑dollar GDP increased 3.8%, or $202.3 billion, in the third quarter to a level of $21.54 trillion.
The price index for gross domestic purchases increased 1.4% in Q3, compared with an increase of 2.2% in Q2. The PCE price index increased 1.5%, compared with an increase of 2.4%. Excluding food and energy prices, the PCE price index increased 2.1%, compared with an increase of 1.9%.
Meanwhile total public debt as % of GDP increased to 105.46% at the end of Q3 2019, the highest level ever.