Economy Watch: GDP Up 3.2% in 3Q

U.S. real GDP growth improved a bit in the third quarter, indicating economic growth remains steady as we head into 2018.

gdp3q17_3rd_chart
Source: Bureau of Economic Analysis

U.S. real gross domestic product increased at an annualized rate of 3.2 percent in the third quarter of 2017, according to the third and final estimate released by the Bureau of Economic Analysis on Dec. 21. That’s just a bit down from the previous estimate of 3.3 percent, but a bit up from the final number in the second quarter, when real GDP increased 3.1 percent.

According to the final estimate for the third quarter, personal consumption expenditures increased less than previously estimated, but the general picture of economic growth remains about the same.

The final version of the recently passed tax cuts hasn’t been analyzed yet by the Joint Committee on Taxation—the official Congressional scorekeeper in these matters—but the committee crunched numbers for the House version in November. It determined that the bill would add about 0.7 percent to U.S. GDP annually over the next 10 years.

That would generate revenue for the federal government, but not enough to offset the cuts, the committee said. The result would be a net reduction in revenue for the government of a little more than $1 trillion over the next decade.