Gross Domestic Product, Third Quarter 2022 (Advance Estimate)

Real gross domestic product (GDP) increased at an annual rate of 2.6 percent in the third quarter of 2022 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP decreased 0.6 percent.

The GDP estimate released today is based on source data that are incomplete or subject to further revision by the source agency (refer to “Source Data for the Advance Estimate” on page 3). The “second” estimate for the third quarter, based on more complete data, will be released on November 30, 2022.

[OCS: The numbers are a politically-motivated guess based on incomplete or faulty data, which will be "partially" corrected in the future with the “second estimate” being posted 22 days after the election.] 

The increase in real GDP reflected increases in exports, consumer spending, nonresidential fixed investment, federal government spending, and state and local government spending, that were partly offset by decreases in residential fixed investment and private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased.

[OCS: The hidden truth – massive government spending, cratering home prices due to rising interest rates and foreclosures, a reduction in imports, and reductions in inventories due to logistical issues and currency issues. All created by the Biden regime’s foreign and domestic policies.]

The increase in exports reflected increases in both goods and services. Within exports of goods, the leading contributors to the increase were industrial supplies and materials (notably petroleum and products as well as other nondurable goods), and nonautomotive capital goods. Within exports of services, the increase was led by travel and “other” business services (mainly financial services). Within consumer spending, an increase in services (led by health care and “other” services) was partly offset by a decrease in goods (led by motor vehicles and parts as well as food and beverages). Within nonresidential fixed investment, increases in equipment and intellectual property products were partly offset by a decrease in structures. The increase in federal government spending was led by defense spending. The increase in state and local government spending primarily reflected an increase in compensation of state and local government employees.

[OCS: The Biden Administration killed the U.S. energy independence and oil exports. Profligate and uncontrolled spending on defense went to Ukraine, as the U.S. rapidly depleted its own weapon cache. Of course, the Biden Administration would ensure that the massive unionized bureaucracy, a sizeable Democrat voting block, was compensated before ordinary workers in the private sector.]

Within residential fixed investment, the leading contributors to the decrease were new single-family construction and brokers’ commissions. The decrease in private inventory investment primarily reflected a decrease in retail trade (led by “other” retailers). Within imports, a decrease in imports of goods (notably consumer goods) was partly offset by an increase in imports of services (mainly travel).

[OCS: Why would anyone build homes in a hostile environment that sees skyrocketing prices in building materials, restrictions on building homes in certain areas without building offsetting low-income housing or donating compensatory property to the government, price controls on rental properties, rising interest rates, and the restrictions on defaulted loan foreclosures.]

Real GDP turned up in the third quarter, increasing 2.6 percent after decreasing 0.6 percent in the second quarter. The upturn primarily reflected a smaller decrease in private inventory investment, an acceleration in nonresidential fixed investment, and an upturn in federal government spending that were partly offset by a larger decrease in residential fixed investment and a deceleration in consumer spending. Imports turned down.

<Source: BEA>