U.S. gross domestic product (GDP) experienced a 0.6 percent increase in the third quarter of 2022, according to the first estimate of the data released Thursday by the U.S. government’s Bureau of Economic Analysis (BEA).
The United States thus exited the technical recession it had entered in the second quarter, when the economy contracted by 0.1 percent, after posting a 0.4 percent decline in the first three months of the year. A technical recession, according to the consensus of economists, is an economic situation that occurs after two consecutive quarters of economic contraction.
The BEA explained that between July and September, there was a small decline in private inventory investment, although non-residential fixed investment accelerated and government spending increased. Residential fixed investment also declined and consumer spending slowed.
On a purely annualized basis, the Bureau’s preferred way of presenting the data, U.S. GDP rose 2.6 percent in the third quarter of the year, compared with a 0.6 percent decline in the second quarter. The annualized decline in the first quarter was 1.6 percent.
In the third quarter, the BEA has indicated that the U.S. saving rate was 3.3 percent, down one-tenth of a percent from the previous three months. Meanwhile, disposable income rose 1.7 percent, after falling 1.5 percent between April and June.
