The Bureau of Economic Analysis  (BEA) revised its estimate of real GDP growth for the 3^rd quarter 2011 down to 2.0 percent in its second estimate of GDP.  BEA had previously estimated that real GDP had advanced at a rate of 2.5  percent during the quarter.  Real GDP increased by 1.3 percent in the 2^nd quarter.  The entire BEA release is available at:  http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm.

The “second” estimate of the third-quarter increase in real GDP is 0.5 percentage point, or $15.0 billion, lower than the advance estimate issued last month, primarily reflecting downward revisions to private inventory investment, to nonresidential fixed investment, and to personal consumption expenditures that were partly offset by a downward revision to imports.

Real personal consumption expenditures increased 2.3 percent in the third quarter, compared with an increase of 0.7 percent in the second.  Durable goods increased 5.5 percent, in contrast to a decrease of 5.3 percent.  Nondurable goods decreased 0.6 percent, in contrast to an increase of 0.2 percent.  Services increased 2.9 percent, compared with an increase of 1.9 percent.

Real nonresidential fixed investment increased 14.8 percent in the third quarter, compared with an increase of 10.3 percent in the second.  Nonresidential structures increased 12.6 percent, compared with an increase of 22.6 percent.  Equipment and software increased 15.6 percent, compared with an increase of 6.2 percent.  Real residential fixed investment increased 1.6 percent, compared with an increase of 4.2 percent.

Real exports of goods and services increased 4.3 percent in the third quarter, compared with an increase of 3.6 percent in the second.  Real imports of goods and services increased 0.5 percent, compared with an increase of 1.4 percent.

Real federal government consumption expenditures and gross investment increased 1.9 percent in the third quarter, the same increase as in the second.  National defense increased 4.7 percent, compared with an increase of 7.0 percent.  Nondefense decreased 3.8 percent, compared with a decrease of 7.6 percent.  Real state and local government consumption expenditures and gross investment decreased 1.4 percent, compared with a decrease of 2.8 percent.

Personal consumption expenditures added 1.63 points to GDP, while nonresidential fixed investment added 1.45 points to real GDP growth.  The change in private inventories was the primary subtraction from real GDP growth during the quarter (-1.55 points).