WASHINGTON, Oct. 27 (UPI) — The U.S. gross domestic product, the broadest measure of the economy, rose 2.5 percent on an annual basis in the third quarter, Commerce Department Thursday.
The department calls the first of three GDP estimates an “advanced” report, as it is likely to undergo revisions as more data becomes available over the next two months.
Thursday’s estimate is in line with expectations and shows a stronger performance than the second quarter, when the economy grew 1.3 percent on a 12-month basis.
The report said computer sales added 0.21 percentage points to the GDP, an increase from the second quarter, when computer sales contributed 0.07 percentage points.
Personal consumption, overall, increased 2.4 percent in the quarter compared to the second. Spending on durable goods intended to last at least three years rose 4.1 percent after declining 5.3 percent in the second quarter. Spending on non-durable goods rose 0.2 percent, consistent with the previous quarter.
Commerce said personal income rose 0.9 percent or by $29.5 billion in the quarter.
Disposable income increased by 0.6 percent, or $17 billion, a sharp drop from the 3.9 percent, or $110.5 billion, increase in the second quarter.