![\"gdp3q16_3rd_chart\"](\"https:\/\/new.thepinetree.net\/wp-content\/uploads\/2016\/12\/gdp3q16_3rd_chart.png\")
<\/a><\/p>\nReal GDP: Percent Change from Preceding Quarter<\/p>\n
Real gross domestic income (GDI) increased 4.8 percent in the third quarter, compared with an increase
\nof 0.7 percent in the second. The average of real GDP and real GDI, a supplemental measure of U.S.
\neconomic activity that equally weights GDP and GDI, increased 4.1 percent in the third quarter,
\ncompared with an increase of 1.1 percent in the second (table 1).<\/p>\n
The increase in real GDP in the third quarter primarily reflected positive contributions from PCE, exports, private inventory investment, nonresidential fixed investment, and federal government spending that were partly offset by negative contributions from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased (table 2).<\/p>\n
The acceleration in real GDP in the third quarter primarily reflected an upturn in private inventory
\ninvestment, an acceleration in exports, a smaller decrease in state and local government spending, an
\nupturn in federal government spending, and a smaller decrease in residential investment, that were
\npartly offset by a smaller increase in PCE and an acceleration in imports.<\/p>\n
Current-dollar GDP increased 5.0 percent, or $225.2 billion, in the third quarter to a level of $18,675.3 billion. In the second quarter, current dollar GDP increased 3.7 percent, or $168.5 billion (table 1 and
\ntable 3).<\/p>\n
The price index for gross domestic purchases increased 1.5 percent in the third quarter, compared with
\nan increase of 2.1 percent in the second quarter (table 4). The PCE price index increased 1.5 percent,
\ncompared with an increase of 2.0 percent. Excluding food and energy prices, the PCE price index
\nincreased 1.7 percent, compared with an increase of 1.8 percent (appendix table A).<\/p>\n
Updates to GDP<\/p>\n
The upward revision to the percent change in real GDP reflected upward revisions to nonresidential
\nfixed investment, PCE, and state and local government spending. For more information, see the
\nTechnical Note. For information on updates to GDP, see the “Additional Information” section that
\nfollows.<\/p>\n