Today’s advance estimate of Gross Domestic Product for the third quarter indicates growth in health spending is maintaining a disproportionate share of weak GDP growth. Commenters noted that the weak estimate was largely due to shrinking inventories. This explains why personal consumption expenditure (PCE) growth ($135.7 billion) was actually higher than GDP growth ($121.1 billion), quarter on quarter.
Nevertheless, spending on health services grew faster (1.22 percent) than spending on all services (1.13 percent) or PCE (1.11 percent.) The growth in health services spending ($25.1 billion) accounted for one fifth of all GDP growth.
Read the entry at NCPA's Health Policy Blog.