US GDP Growth Cools to 2.0% on Lower Personal Spending

Source: Bureau of Economic Analysis

American economic growth slowed to its lowest level in five quarters during the July to September period, dragged mainly by personal spending.

• The real gross domestic product grew by 2.0% in the third quarter, following the 6.7% the previous quarter.
• The latest reading is the slowest since GDP slipped into negative territory in the second quarter of 2020 amid the COVID-19 pandemic.
• The deceleration was attributed to a slowdown in personal consumption expenditure, as spending for goods and services decelerated.
• The slowdown was led by the decline in spending for motor vehicles and parts, and food services, and accommodations.
• Current-dollar GDP climbed 7.8% or $432.5 billion to $23.17 trillion, slower than the 13.4% or $702.8 billion increase the past quarter.
• The price index for gross domestic purchases jumped 5.4%, with the PCE price index up 5.2% versus the 6.5% increase earlier.