Close Navigation
Learn more about IBKR accounts

US GDP Expands 4.9% In Q3: Strong Household Consumption Beats Expectations

Posted October 26, 2023
Piero Cingari
Benzinga

The U.S. economy outperformed expectations by recording a robust 4.9% growth rate in the third quarter of 2023, as revealed by advance estimates released on Thursday by the Bureau of Economic Analysis. This exceeded the economist projected growth rate of 4.3%.

When excluding the post-pandemic period, the rate of economic growth in the last quarter was some of the strongest in the last decade.

US Q3 GDP: Key Highlights

  • The U.S. gross domestic product (GDP) surged by 4.9% at a quarter-on-quarter annualized rate in the third quarter of 2023, showing a significant acceleration from the 2.1% growth observed in the second quarter. This figure notably exceeded economists’ expectations of 4.3%.
  • This growth rate is the highest since the second quarter of 2014 and well above the pre-pandemic decade’s average of 2.35%.
  • The primary driver of this growth was consumer spending, which exhibited a remarkable 4% growth rate during the quarter, a substantial improvement from the 0.8% growth seen in the second quarter.
  • The Personal Consumption Expenditures (PCE) price index increased by 2.9%, up from the previous 2.5%. When excluding food and energy prices, the PCE price index also rose, registering a 2.4% increase, but down from the prior 3.5%.

Immediately after the release, the U.S. dollar (DXY) index experienced a significant 0.2% upswing.

Originally Posted October 26, 2023 – US GDP Expands 4.9% In Q3: Strong Household Consumption Beats Expectations

Join The Conversation

If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.

One thought on “US GDP Expands 4.9% In Q3: Strong Household Consumption Beats Expectations”

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclosure: Benzinga

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.