US economy sees growth rate of 2.8 percent in Q3

(MENAFN) The US economy saw a growth rate of 2.8 percent in the third quarter of 2024, as per the Commerce Department’s initial estimate released on Wednesday. This figure was slightly below market expectations of 3 percent and marks a decrease from the 3 percent growth recorded in the second quarter of 2024. The latest numbers reflect a steady yet moderated pace of economic expansion in the latter half of the year.

In current dollar terms, the GDP rose by 4.7 percent on an annualized basis, equating to an increase of USD333.2 billion and bringing the total GDP to USD29.35 trillion by the end of the third quarter. This growth was a slight slowdown compared to the second quarter, where the GDP grew by 5.6 percent, or USD392.6 billion, indicating some cooling off from earlier gains this year.

Personal income in current dollars showed a significant increase of USD221.3 billion in the third quarter, albeit down from the previous quarter's USD315.7 billion rise. According to the Commerce Department, much of this growth was attributed to higher compensation, which continued to support household income levels through mid-2024. Disposable personal income also rose in the third quarter, increasing by USD166 billion, or 3.1 percent, though this was lower than the 5 percent growth rate observed in the second quarter.

Personal savings dropped during this period, with the total savings amounting to USD1.04 trillion in the third quarter, a decrease from USD1.13 trillion in the second quarter. The personal saving rate also declined slightly, coming in at 4.8 percent of disposable personal income, down from 5.2 percent in the previous quarter. These shifts suggest that while incomes have risen, households are saving a smaller portion of their disposable income as economic growth moderates.

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