GDP Grows at 3.4% Pace, Slower Than Projected
Third quarter gross domestic product growth was revised down to a 3.4% gain from the 3.5% gain in the previous estimate, data released Friday by the Bureau of Economic Analysis showed.
At the same time, the price picture was revised only modestly from the previous estimate. The core PCE price index was revised up to 1.6% from 1.5%, but the year/ year rate is still at 2.0%, up from 1.9% in the previous quarter.
The slight downward revision to GDP was driven by downward revisions to residential investment and PCE, and a wider net export gap, but was partially offset by an upward revision in private inventory investment.
PCE growth was revised down to a 3.5% pace from 3.6% in the previous estimate, while the net export gap now stands at $949.7 billion, wider than $945.8 billion gap in the previous estimate.