GDP increases 2 percent in Q3(Read article summary)
The Bureau of Economic Analysis' first estimate shows that the economy continued to expand in Q3 with real GDP increasing at a tepid annualized rate of 2 percent from Q2 2012.
Today, the¬†Bureau of Economic Analysis¬†(BEA) released their first¬†"estimate" of the Q3 2012 GDP reportshowing that the economy continued to expand with real GDP increasing at a tepid annualized rate of 2.0% from Q2 2012.¬†
On a year-over-year basis real GDP increased 2.32% while the quarter-to-quarter non-annualized percent change was 0.50%.¬†
The latest quarterly results indicate that the most notable source of weakness in the economy came from declining exports of goods and services, a notable decline private farm inventories and weakness in non-residential structures.
Government spending worked to buoy GDP with a 13% quarter-on-quarter increase in non-defense spending while a decline in imports of goods also added positively (declining imports contribute positively to the final GDP aggregate).¬†
Other categories such as residential structures also saw notable slowing from the prior quarter registering a still respectable rate of 8.5% while non-residential fixed structures expand by just 0.6%.¬†¬†
Keep in mind that these results are likely very poorly estimated and are sure to be revised notably in following quarters and even years to come.