Archive for December, 2013

Value of Both Foreign Investments in the United States and U.S. Investments Abroad Increased in Third Quarter 2013

The U.S. net international investment position was –$4,165.6 billion (preliminary) at the end of the third quarter of 2013 as the value of foreign investments in the United States exceeded the value of U.S. investments abroad. At the end of the second quarter, the net position was –$4,455.0 billion (revised).iip1230

• The $289.5 billion increase in the net position reflected a $621.5 billion increase in the value of U.S.-owned assets abroad that exceeded a $332.1 billion increase in the value of foreign-owned assets in the United States.

• The U.S. net position increased primarily as rising foreign stock prices, as well as the appreciation of foreign currencies relative to the U.S. dollar, increased the value of U.S.-owned assets abroad more than the increase in the value of foreign-owned assets in the United States.

• The U.S. net international investment position increased 6.5 percent in the third quarter compared with a 5.2 percent decrease in the second quarter, and an average quarterly decrease of 7.6 percent from the first quarter of 2011 through the second quarter of 2013.

• U.S.-owned assets abroad were $21,590.9 billion at the end of the third quarter, compared with $20,969.4 billion at the end of the second quarter.

• Foreign-owned assets in the United States were $25,756.5 billion at the end of the third quarter, compared with $25,424.4 billion at the end of the second quarter.

For more on the U.S. net international investment position, read the full report.

Consumer Spending Rises in November

pi1Personal income increased 0.2 percent in November after decreasing 0.1 percent in October. Wages and salaries, the largest component of personal income, rose 0.4 percent after rising 0.1 percent.

Current-dollar disposable personal income (DPI), after-tax income, increased 0.1 percent in November after decreasing 0.2 percent in October.

Real DPI, income adjusted for taxes and inflation, increased 0.1 percent in November after decreasing 0.2 percent in October.

Real consumer spending, spending adjusted for price changes, increased 0.5 percent in November after increasing 0.4 percent in October. Spending on durable goods increased in November as well as October.

PCE prices remained flat in November, the same as in October. Excluding food and energy, PCE prices rose 0.1 percent in November.

pi2Personal saving rate
Personal saving as a percent of DPI was 4.2 percent in November and 4.5 percent in October.

To learn more about personal income and outlays, read the full report.

GDP Growth Accelerates in Third Quarter

Real gross domestic product (GDP) increased 4.1 percent in the third quarter of 2013, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was 0.5 percentage point more than the “second” estimate released earlier this month. In the second quarter, the growth rate was 2.5 percent.gdp1

GDP highlights
Inventory investment accelerated in the third quarter, accounting for about 40 percent of real GDP growth, compared with about 15 percent in the second quarter.

GDP less inventory investment (real final sales of domestic product) rose 2.5 percent in the third quarter, compared with 2.1 percent in the second
quarter.

Also contributing to the acceleration in growth, imports rose less in the third quarter than in the second quarter. Spending by state and local governments and by consumers accelerated.

Revisions
The upward revision to third-quarter GDP growth was largely accounted for by a revision to consumer spending—to 2.0 percent growth (third estimate), up from 1.4 percent (second estimate). That revision mainly reflected an upward revision to services, especially to health care and to recreation services. Consumer spending on nondurable goods was also revised up, mainly gasoline and other energy goods.

In addition, business investment was revised up, mainly in intellectual property products, specifically software.

Partially offsetting the upward revisions, residential investment was revised down.

Corporate profitsgdp2
The revised estimate of third-quarter corporate profits was little changed from the previous estimate. Profits increased 1.9 percent after increasing 3.3 percent in the second quarter.
• Profits of nonfinancial corporations rose 1.0 percent after rising 3.2 percent.
• Profits of financial corporations rose 2.1 percent after rising 5.7 percent.
• Profits from the “rest of the world” rose 4.1 percent after rising 1.2 percent.

Over the last four quarters, profits rose 5.7 percent.

For more on GDP, read the full report.