UPDATE - US economy expands 2.8% in 3rd quarter, lower than estimates of 3%

American economy expanded 3% in 2nd quarter

UPDATES WITH ADDITIONAL FIGURES

By Ovunc Kutlu

ISTANBUL (AA) - The US economy expanded 2.8% in the third quarter of 2024, according to the Commerce Department's first advance reading released Wednesday.

The figure came lower than market estimates of 3%.

The American economy expanded by 3% in the second quarter of 2024.

The current dollar GDP increased 4.7% at an annual rate, or $333.2 billion, in the third quarter to reach $29.35 trillion, a Commerce Department statement said.

"In the second quarter, GDP increased 5.6 percent, or $392.6 billion," it added.

Current-dollar personal income increased $221.3 billion in the third quarter, up from gains of $315.7 billion in April-June, according to the agency.

"The increase primarily reflected an increase in compensation," said the statement.

Disposable personal income, meanwhile, increased $166 billion, or 3.1% in July-September, following an increase of $260.4 billion, or 5%, in the second quarter.

Personal savings, however, were 1.04 trillion in the third quarter, down from $1.13 billion in the second quarter.

"The personal saving rate — personal saving as a percentage of disposable personal income — was 4.8 percent in the third quarter, compared with 5.2 percent in the second quarter," the statement said.

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