US Q3 GDP beats expectations with 4.3% increase

(Sharecast News) - The US economy expanded at an annualised rate of 4.3% in quarter to September period, the US Bureau of Economic Analysis reported on Tuesday, up from 3.8% in April-June, driven by higher consumer and government spending along with exports.

The preliminary reading beat forecasts of a slowing to 3.3%. A fall in investment partly offset the rise, the BEA said.

Imports, which are a subtraction in the calculation of GDP, decreased, it added.

Compared to the second quarter, the acceleration in real GDP in the third quarter reflected a smaller decrease in investment, an acceleration in consumer spending, and upturns in exports and government spending. Imports decreased less in the third quarter.

Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 3%, compared with a rise 2.9% in the second quarter.

The price index for gross domestic purchases increased 3.4% compared with a 2% rise in the second quarter. The personal consumption expenditures price index was up 2.8% against 2.1% in the prior three months. Excluding volatile food and energy prices, the PCE price index increased 2.9%, compared with an increase of 2.6% last quarter.

Reporting by Frank Prenesti for Sharecast.com