US Q3 GDP Growth Hits 3.4%, Beats Forecast as Core PCE Inflation Edges Higher
U.S. economic growth accelerated in the third quarter, with advance real gross domestic product (GDP) rising at an annualized quarterly rate of 3.4%, exceeding the 3.2% market forecast and improving on the previous quarter's 2.20% growth rate, according to information shared by Wu Blockchain.
The data showed a mixed picture for the U.S. economy. Economic growth outperformed expectations, while core personal consumption expenditures (PCE) inflation remained elevated in September. The figures indicate that stronger-than-expected output coincided with renewed monthly inflation pressure, although the annualized core PCE reading for the third quarter declined from the previous quarter.
U.S. GDP Growth Exceeds Market Expectations
The advance estimate of third-quarter real GDP recorded annualized quarter-over-quarter growth of 3.4%, beating economists' expectations of 3.2%. The result also marked an acceleration from the 2.20% rate reported for the preceding quarter.
GDP measures the value of goods and services produced across the economy. The stronger-than-forecast reading points to firmer economic activity than markets had anticipated for the third quarter. However, the advance figure is an initial estimate and may be revised as additional economic information becomes available.
Quarterly Core PCE Inflation Slows
The advance reading for the annualized third-quarter core PCE price index came in at 2.5%, slightly above the 2.40% estimate. Despite missing the forecast, the reading was lower than the previous quarter's 3.30% rate.
Core PCE inflation excludes food and energy prices and is closely monitored as a measure of underlying inflation. The decline from 3.30% to 2.5% suggests that the quarterly pace of core price increases eased, even as the result remained marginally above expectations.
September Core PCE Inflation Rises
Separate monthly figures showed that the core PCE price index increased by 0.3% in September, matching the 0.30% market consensus. The previous month's reading was revised upward from 0.20% to 0.3%, meaning the revised August figure matched September's monthly increase.
On an annual basis, core PCE inflation reached 3.1% in September, in line with the 3.10% consensus estimate. The figure edged higher from the previously reported 3.00% rate.
Together, the indicators show that U.S. GDP growth surpassed forecasts while September's annual core inflation rate rose from 3.00% to 3.1%. Monthly core PCE inflation also matched expectations at 0.3%, while the advance annualized quarterly reading eased to 2.5% from 3.30% in the previous quarter.
Wu Blockchain reported that analysts characterized the data as a combination of stronger-than-expected third-quarter GDP and accelerating September inflation, with the inflation figures broadly matching market consensus.
Writer: Victoria HaleTechnology & Blockchain WriterVictoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.She prioritises clarity and accuracy when explaining technical developments to a general audience.
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