The Bureau of Economic Analysis (BEA) released its advance estimate of growth in the inflation-adjusted (“real”) gross domestic product (GDP) for the 3^rd quarter of 2011 (at http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm ). 

According to the advance estimate, annualized GDP growth in the 3^rd quarter was 2.5%.  The most recent Blue Chip Consensus forecast predicted growth of 1.9% in the 3^rd quarter (and predicts 1.9% in the 4^th quarter).  Growth in the 2^nd quarter of 2011 was 1.3%, and growth in the 1^st quarter was 0.4%.   The BEA will release its second estimate for 3^rd quarter GDP growth on November 22. 

Highlights:

• The 2.5% rate of growth primarily reflected positive contributions from personal consumption expenditures, nonresidential fixed investment, exports, and federal government spending. 
• These positive contributions were partly offset by negative contributions from private inventory investment, imports, and state and local government spending.
• The acceleration in GDP growth, from a rate of 1.3% in the 2^nd quarter, was due to acceleration in personal consumption expenditures and nonresidential fixed investment, as well as a smaller decrease in state and local government spending. 
• The acceleration was slightly offset by a larger decline in private inventory investment compared to the 2^nd quarter.