WASHINGTON – Real gross domestic product expanded 2.5% at an annual rate in the third quarter, following an increase of 1.3% in the second quarter, according to an advance estimate reported by the Commerce Department Thursday.
The last reported increase that high was for the third quarter of last year.
This third quarter gain, which was on target with the projection from economists polled by Thomson Reuters, reflected positive contributions from personal income expenditures, nonresidential fixed investment, exports, and federal government spending that were partly offset by negative contributions from private inventory investment and state and local government spending, the department said.
Personal consumption expenditures increased 2.4%, the highest since the third quarter 2006, and much higher than the 0.7% gain reported for the second quarter.
Nonresidential fixed investment rose 16.3%, the highest since the first quarter 1960 and much higher than the 10.3% gain reported for the second quarter. Nonresidential structures were up 13.3%, compared with a previous increase of 22.6%.
Exports of goods and services were up 4.0% in the third quarter, compared with a 3.6% gain in the previous quarter.
Federal government consumption expenditures and gross investment was up 2.0%, the highest gain since the third quarter 1974, following a 1.8% gain in the second quarter.
