Archive for December, 2013



Real Consumer Spending Rose in October

PI_1206_1Personal income decreased 0.1 percent in October after increasing 0.5 percent in September. Wages and salaries, the largest component of personal income, rose 0.1 percent after rising 0.4 percent. Proprietors’ income fell 1.4 percent in October due to a decline in farm proprietors’ income after farmers received a one-time payment in September for a settlement of a lawsuit against the Department of Agriculture.

Current-dollar disposable personal income (DPI), after-tax income, decreased 0.2 percent in October after increasing 0.5 percent in September.

Real DPI, income adjusted for taxes and inflation, decreased 0.2 percent in October after rising 0.4 percent in September.

Real consumer spending, spending adjusted for price changes, increased 0.3 percent in October after increasing 0.1 percent in September. Spending on durable goods increased in October after decreasing in September.

PI_1206_2PCE prices were flat in October after rising 0.1 percent in September. Excluding food and energy, PCE prices rose 0.1 percent in October, the same as in September.

Personal saving rate
Personal saving as a percent of DPI was 4.8 percent in October and 5.2 percent in September.

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

GDP Growth Picks up in Third Quarter

Real gross domestic product (GDP) increased 3.6 percent in the third quarter of 2013, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.8 percentage point more than the “advance” estimate released the previous month. In the second quarter, the growth rate was 2.5 percent.gdp_1205_1

GDP highlights
In the third quarter, inventory investment picked up notably, accounting for nearly half of real GDP growth. In the second quarter, inventory investment accounted for less than one-fifth of growth. GDP less inventory investment (real final sales of domestic product) rose only 1.9 percent in the third quarter, compared with 2.1 percent in the second quarter.

Also contributing to the stepup in real GDP growth, imports rose less in the third quarter than in the second quarter. State and local government spending picked up.

Offsetting these movements, exports, consumer spending, and business investment each grew at a slower rate in the third quarter than in the second quarter.

Revisions
The upward revision to third quarter GDP growth was more than accounted for by an upward revision to inventory investment, which reflected newly available Census Bureau data. Strong upward revisions to wholesale trade, retail trade, and mining inventory investment accounted for most of the revision.

Business investment was also revised up, mainly reflecting an upward revision to equipment investment.

Corporate profitsgdp_1205_2
Growth in BEA’s featured measure of corporate profits slowed in the third quarter, increasing 1.8 percent after increasing 3.3 percent in the second quarter.

• Profits of nonfinancial corporations rose 1.1 percent after rising 3.2 percent.
•Profits of financial corporations rose 1.9 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 4 quarters, corporate profits rose 5.6 percent.

For more on GDP, read the full report.

Guam’s Economy Grows 0.5 Percent in 2012

Newly published estimates for Guam show that real gross domestic product (GDP)—GDP adjusted to remove price changes—increased 0.5 percent in 2012, after decreasing 0.6 percent in 2011.

For comparison, real GDP for the United States (excluding the territories) increased 2.8 percent in 2012 and 1.8 percent in 2011.

In 2012, the increase in real GDP reflected an improvement in the trade balance. Exports of services—primarily spending by tourists—contributed significantly to economic growth.

In 2011, the decline in real GDP reflected a decrease in private fixed investment and a deterioration in the trade balance. The decrease in private fixed investment reflected a drop in private construction activity.

Read the full report here.