October 27, 2017

GDP Grows At 3 Percent Again

  • In the third quarter of 2017, the economy expanded at an annual rate of 3.0 percent.
  • Growth in the second quarter was 3.1 percent, and first quarter growth was 1.2 percent.
  • This half-year growth is the strongest the U.S. has seen since 2014, and it comes despite the effects of Hurricanes Harvey, Irma, and Maria.

The nation’s economy grew at an inflation-adjusted annual rate of 3.0 percent in the third quarter of 2017. Combined with second quarter growth of 3.1 percent, these are the strongest two consecutive quarters since 2014, when the economy grew at 4.6 percent in the second quarter and 5.2 percent in the third quarter. During President Obama’s eight years in office, economic growth hit at least 3 percent in two consecutive quarters only twice. To keep this high level of growth, Republicans are committed to delivering tax relief and other policies that will allow the private sector to create jobs and grow the economy.

In the first half of 2017, the economy expanded at an annual rate of 2.1 percent: 1.2 percent in the first quarter and 3.1 percent in the second quarter. One year ago, third quarter 2016 GDP growth was 2.8 percent.

Changes to GDP Components from Q2 to Q3, 2017

GDP Q3 2017

Personal consumption expenditures grew at 2.4 percent. Gross private domestic investment grew at 6.0 percent, and exports grew at 2.3 percent. Imports, a negative impact on GDP, shrank by 0.8 percent. Federal government spending grew by 1.1 percent, while state and local government spending declined by 0.9 percent.

Issue Tag: Economy