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Economy Slows As GDP Increases 1.5 Percent in Third Quarter After Expanding at 3.9 Percent in Second

Last year during this quarter, economy grew 3.5 percent

cash money
AP
October 29, 2015

The U.S. economy slowed as real gross domestic product (GDP) increased at an annual rate of 1.5 percent in the third quarter of 2015, after expanding at a greater percentage last quarter, according to Bureau of Economic Analysis (BEA) data released Thursday.

This is a decline from the 3.9 percent growth the economy saw in the second quarter of 2015.

The 1.5 percent growth just announced is down significantly from the 3.5 percent growth seen in the third quarter of 2014.

The real GDP measure of 1.5 percent represents the Bureau’s "advance" estimate, which is based on incomplete source data. A second, more detailed estimate will be released on Nov. 24, 2015. Real GDP is adjusted for inflation and represents the value of the production of goods and services in the United States.

BEA says the increase in real GDP was due to personal consumption expenditures, exports, state and local government spending, and residential fixed investment. According to BEA, these were offset by negative contributions from private inventory investment.