Real gross domestic product (GDP) increased at an annual rate of 2.9 percent in the third quarter of 2022, in contrast to a decrease of 0.6 percent in the second quarter. The increase in the third quarter primarily reflected increases in exports and consumer spending that were partly offset by a decrease in housing investment.
The upturn in the third quarter, compared to the second quarter, primarily reflected a smaller decrease in private inventory investment, an upturn in government spending, and an acceleration in nonresidential fixed investment that were partly offset by a larger decrease in residential fixed investment and a deceleration in consumer spending. Imports turned down. For more details, including source data, refer to the Technical Note.
The third-quarter increase in real GDP reflected increases in exports, consumer spending, business investment, and government spending that were partly offset by decreases in housing investment and inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased.
- The increase in exports reflected both goods (led by industrial supplies and materials, “other” goods, and nonautomotive capital goods) and services (led by travel and “other” business services).
- The increase in consumer spending reflected an increase in services (led by health care and "other" services) that was partly offset by a decrease in goods (led by motor vehicles and parts as well as food and beverages).
- The increase in business investment reflected increases in equipment and intellectual property products that were partly offset by a decrease in structures.
- The increase in government spending reflected increases in state and local as well as federal (led by defense spending).
- The decrease in housing investment was led by new single-family housing construction and brokers’ commissions.
- The decrease in private inventory investment was led by retail trade (mainly clothing and accessory stores and “other” retailers).
- The decrease in imports reflected a decrease in goods (led by consumer goods) that was partly offset by an increase in services (led by travel).
Updates to GDP
The update from the “advance” estimate primarily reflects upward revisions to consumer spending and business investment that were partly offset by a downward revision to inventory investment.
Personal income and saving
Real disposable personal income (DPI)— personal income adjusted for taxes and inflation—increased 0.9 percent in the third quarter after decreasing 2.3 percent (revised) in the second quarter.
Current-dollar DPI increased 5.2 percent in the third quarter, following an increase of 4.8 percent (revised). The increase in current-dollar DPI for the third quarter primarily reflected increases in compensation and personal interest income.
Personal saving as a percentage of DPI was 2.8 percent in the third quarter, compared with 3.2 percent (revised) in the second quarter.
Corporate profits from current production
Profits decreased 1.1 percent at a quarterly rate in the third quarter after increasing 4.6 percent in the second quarter.
- Profits of domestic nonfinancial corporations increased 0.3 percent after increasing 7.9 percent.
- Profits of domestic financial corporations decreased 7.1 percent after decreasing 9.0 percent.
- Profits from the rest of the world decreased 1.0 percent after increasing 5.8 percent.
Corporate profits increased 4.4 percent in the third quarter from one year ago.
Prices
Gross domestic purchases prices, the prices of goods and services purchased by U.S. residents, increased 4.7 percent in the third quarter, an upward revision of 0.1 percentage point. Excluding food and energy, prices increased 5.0 percent, an upward revision of 0.2 percentage point.
Personal consumption expenditure (PCE) prices increased 4.3 percent in the third quarter, an upward revision of 0.1 percentage point. Excluding food and energy, the PCE “core” price index increased 4.6 percent, also revised up 0.1 percentage point.
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