The Commerce Department reported that real GDP increased 2.5% in Q3/11, after increasing 1.3% in Q2/11, according to estimates by the Bureau of Economic Analysis.

Investment in equipment and software accelerated at 17.4%, reflecting positive contributions from construction and agricultural machinery (both included in “other” equipment) as well as industrial equipment and transportation equipment.

Contributing to the growth in real GDP growth was accelerated consumer spending, increasing 2.4% in Q/3 compared to an increase of 0.7% in Q/2.

An upturn in durable goods mainly reflected a smaller decline in motor vehicles and parts, and a pickup in services mainly reflected spending for housing and utilities and for healthcare.

A larger decrease in inventory investment in Q/3 partly offset these contributions to real GDP growth.

Prices of goods and services purchased by U.S. residents slowed in Q/3, rising 2.0% following a 3.3% rise in Q/2. Both food and energy prices slowed. Excluding food and energy, prices rose 1.8% after rising 2.7%.

Real disposable personal income – adjusted for inflation and taxes – decreased 1.7% in Q/3 following an increase of 0.6% in Q/2.

To read the full BEA news release click here.