Real gross domestic product – the output of goods and services produced by labor and property located in the United States – increased at an annual rate of 2.6 percent in the third quarter of 2010 (that is, from the second quarter to the third quarter), according to the "third" estimate released December 22 by the U.S. Bureau of Economic Analysis. In the second quarter, real GDP increased 1.7 percent.
The GDP estimate released December 22 is based on more complete source data than were available for the "second" estimate issued last month. In the second estimate, the increase in real GDP was 2.5 percent.
The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures, private inventory investment, non-residential fixed investment, exports and federal government spending that were partly offset by a negative contribution from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
The acceleration in real GDP in the third quarter primarily reflected a sharp deceleration in imports and an acceleration in private inventory investment that were partly offset by a downturn in residential fixed investment and decelerations in non-residential fixed investment and in exports.
Motor vehicle output added 0.49 percentage point to the third-quarter change in real GDP after subtracting 0.06 percentage point from the second-quarter change. Final sales of computers added 0.29 percentage point to the third-quarter change in real GDP after adding 0.03 percentage point to the second-quarter change.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 0.7 percent in the third quarter, 0.1 percentage point less than the second estimate; this index increased 0.1 percent in the second quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 0.4 percent in the third quarter, compared with an increase of 0.8 percent in the second.
Real personal consumption expenditures increased 2.4 percent in the third quarter, compared with an increase of 2.2 percent in the second. Real non-residential fixed investment increased 10.0 percent, compared with an increase of 17.2 percent. Non-residential structures decreased 3.5 percent, compared with a decrease of 0.5 percent. Equipment and software increased 15.4 percent, compared with an increase of 24.8 percent. Real residential fixed investment decreased 27.3 percent, in contrast to an increase of 25.7 percent.
Real exports of goods and services increased 6.8 percent in the third quarter, compared with an increase of 9.1 percent in the second. Real imports of goods and services increased 16.8 percent, compared with an increase of 33.5 percent.
Real federal government consumption expenditures and gross investment increased 8.8 percent in the third quarter, compared with an increase of 9.1 percent in the second. National defense increased 8.5 percent, compared with an increase of 7.4 percent. Non-defense increased 9.5 percent, compared with an increase of 12.8 percent. Real state and local government consumption expenditures and gross investment increased 0.7 percent, compared with an increase of 0.6 percent.
The change in real private inventories added 1.61 percentage points to the third-quarter change in real GDP, after adding 0.82 percentage point to the second-quarter change. Private businesses increased inventories $121.4 billion in the third quarter, following increases of $68.8 billion in the second quarter and $44.1 billion in the first.
Real final sales of domestic product – GDP less change in private inventories – increased 0.9 percent in the third quarter, the same increase as in the second.
Gross domestic purchases
Real gross domestic purchases – purchases by U.S. residents of goods and services wherever produced – increased 4.2 percent in the third quarter, compared with an increase of 5.1 percent in the second.
Gross national product
Real gross national product – the goods and services produced by the labor and property supplied by U.S. residents – increased 2.3 percent in the third quarter, compared with an increase of 1.8 percent in the second. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which decreased $7.1 billion in the third quarter after increasing $3.7 billion in the second; in the third quarter, receipts increased $5.9 billion, and payments increased $13.0 billion.
