US Gross Domestic Product grew during third quarter of 2005

December 1, 2005

The US government released a preliminary report on the US economy today. The report, produced by the Bureau of Economic Analysis, states that the economy grew by 4.3 percent in the third quarter of 2005. In the second quarter of 2005, real GDP increased 3.3 percent.

The rise is attributed to increases in personal consumption (4.2 percent), equipment and software (10.8 percent), government spending, and residential fixed investment (8.4 percent). Imports, which deduct from the GDP, also increased. Exports, however, increased.

Government consumption expenditures increased 8.1 percent. National defense had an increase of 10.3 percent. Nondefense spending increased 3.6 percent.

Gross national product, which better reflects the economy in from the employee's perspective, increased 4.4 percent in the third quarter.