Real gross domestic product rose at a revised 2.9 percent annualized rate in the third quarter versus a 0.6 percent rate of decline in the second quarter and a -1.6 pace in the first quarter (see first chart). Over the past four quarters, real gross domestic product is up 1.9 percent.
Real final sales to private domestic purchasers, about 88 percent of real GDP and a key measure of private domestic demand, has shown greater resilience, with growth having stayed positive despite declines in real GDP. However, growth has slowed significantly, from a 2.6 percent pace in the fourth quarter of 2021 to 2.1 percent in the first quarter, 0.5 percent in the second quarter, and a revised 0.5 percent in the third quarter (see first chart). Over the last four quarters, real final sales to private domestic purchasers are up 1.4 percent.