Real GDP increased at an annual rate of 2.6% in the the third quarter (consensus 2.3%). The GDP Price Deflator, meanwhile, stepped down to 4.1% (consensus 5.3%) from 9.0% in the second quarter.
The key takeaway from the report is that it ends a two-quarter streak of negative GDP prints. It also suggests the economy held up well in the third quarter as it started to acclimate to rising interest rates. Real final sales of domestic product, which excludes the change in private inventories, increased a solid 3.3%.