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U.S. Economy Expands 4.3% in QIII/05 Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 4.3% in the third quarter of 2005, according to preliminary estimates released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.3%. The major contributors to the increase were personal consumption expenditures (PCE), equipment and software, federal government spending, and residential fixed investment. The contributions of these components were partly offset by a negative contribution from private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased. The acceleration in real GDP growth in the third quarter primarily reflected a smaller decrease in private inventory investment and accelerations in PCE and in federal government spending that were partly offset by a deceleration in exports, an upturn in imports, and a deceleration in state and local government spending. Final sales of computers contributed 0.17 percentage point to the third-quarter growth in real GDP after contributing 0.32 percentage point to the second-quarter growth. Motor vehicle output contributed 0.56 percentage point to the third-quarter growth in real GDP after subtracting 0.01 percentage point from the second-quarter growth. Equipment and software increased 10.8%, compared with an increase of 10.9%. Real residential fixed investment increased 8.4%, compared with an increase of 10.8%. Click here to read the full report. Wednesday, November 30, 2005  SOUND OFF! Send a letter to the Editor, Stuart Papavassiliou at sppapa@monitordaily.com. To get your company’s news included on the monitordaily.com site and published in the Monitor, contact Chris Moraff, Associate Editor, at 610.293.1300 x112 or email news to cmoraff@monitordaily.com. If you would like to search our News Archives, please click here. |
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