US real (inflation-adjusted) GDP in Q3 grew +33.1% on an annualized basis, compared to Q2 (following a -31.4% drop in Q2).

On a straight q/q basis, real GDP fell -9.0% in Q2 and rose +7.4% in Q3.

Q3 real GDP was still down -2.9% from the same quarter a year ago.

The composition of GDP growth in Q3 was: +33.1 = +25.3 consumption +2.9 business investment +6.6 inventory + 2.1 housing -0.7 government spending -3.1 net exports.

This is in contrast to the composition of GDP growth in Q2: -31.4 = -24.0 consumption -3.7 business investment -3.5 inventory -1.6 housing +0.8 government spending +0.6 net exports.

Consumption grew at an annualized rate of +40.7% in Q3, after falling -33.2% in Q2.

On a straight q/q basis, this was a drop of -9.6% in Q2 and a rise of +8.9% in Q3.

Consumption in Q3 was -2.9% lower than the same quarter a year ago.

Business investment grew at an annualized rate of +20.3% in Q3, after falling -27.2% in Q2.

On a straight q/q basis, this was a drop of -7.6% in Q2 and a rise of +4.7% in Q3.

Business investment in Q3 was -5.0% lower than the same quarter a year ago.

Inventories did not really rise in Q3, but because they did not fall as dramatically as in Q2, mathematically they added +6.6 points to GDP growth.

Residential investment grew at an annualized rate of +59.3% in Q3, after falling -35.6% in Q2.

On a straight q/q basis, this was a drop of -10.4% in Q2 and a rise of +12.3% in Q3.

Residential investment in Q3 was +6.6% higher than the same quarter a year ago.

Likely due to low interest rates, housing is one area of the US economy that is actually doing better than before COVID-19.

Government spending fell at an annualized rate of +4.5% in Q3, after rising -2.5% in Q2.

On a straight q/q basis, this was a rise of +0.6% in Q2 and a decline of -1.1% in Q3.

Government spending in Q3 was +0.4% higher than the same quarter a year ago.