Prior estimate was 3.3%

  • Real gross domestic product (GDP) increased at an annual rate of 3.2 percent in the third quarter of 2017, according to the "third" estimate
  • In the second quarter, real GDP increased 3.1 percent.
  • The increase in real GDP in the third quarter reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, nonresidential fixed investment, exports, federal government spending, and state and local government spending that were partly offset by a negative contribution from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, decreased.

Annualized quarterly changes

  • GDP 3.2% vs 3.3% estimate and 3.3% 2nd revision
  • Personal consumption 2.2% vs 2.3% last
  • Gross private investment 7.3% vs 7.3% last
  • Exports 2.1% vs 2.2%. Imports -0.7% vs -1.1% last
  • Government +0.7% vs +0.4% last
  • Inventories were little changed at 38.5B vs $39B last

Contributions to the 3.2% gain:

  • Consumption 1.49% (was 1.6%).
  • Investment 1.19% (was 1.20%).
  • Net Exports +0.36% (was 0.43%).
  • Government +0.12% (was 0.07%).

Inflation measures showed:

  • Core PCE for the 3Q came in at 1.3% vs 1.4% estimate and 1.4% last
  • GDP Price index rose 2.1% vs 2.1% estimate and 2.1% last

A little wiggle here, a little wiggle there. The consumption which is 2/3 of GDP (roughly) was revised lower and that is the difference.