The U.S. net international investment position was -$6,157.9 billion (preliminary) at the end of the third quarter of 2014 as the value of U.S. liabilities exceeded the value of U.S. assets. At the end of the second quarter, the net position was -$5,475.4 billion (revised).
- The $682.5 billion decrease in the net position reflected a $362.4 billion decrease in the value of U.S. assets and a $320.2 billion increase in the value of U.S. liabilities.
- The decrease in the net position was mostly attributable to the depreciation of major foreign currencies against the U.S. dollar that lowered the value of U.S. assets in dollar term; U.S. liabilities mostly denominated in dollars were less affected.
- The U.S. net international investment position decreased 12.5 percent in the third quarter, compared with an increase of 0.7 percent in the second quarter and an average quarterly decrease of 7.0 percent from the first quarter of 2011 through the first quarter of 2014.
- U.S. assets were $24,614.6 billion at the end of the third quarter compared with $24,977.0 billion at the end of the second quarter.
- U.S. liabilities were $30,772.5 billion at the end of the third quarter compared with $30,452.3 billion at the end of the second quarter.
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Personal income rose 0.4 percent in November after rising 0.3 percent in October. Wages and salaries, the largest component of personal income, rose 0.5 percent in November after rising 0.3 percent in October.
Current-dollar disposable personal income (DPI), after-tax income, rose 0.3 percent in November, the same increase as in October.
Real DPI, income adjusted for taxes and inflation, increased 0.5 percent in November after increasing 0.3 percent in October.
Real consumer spending, spending adjusted for price changes, increased 0.7 percent in November after increasing 0.2 percent in October. Spending on durable goods increased 2.3 percent in November after increasing 0.4 percent in October. Purchases of motor vehicles and parts accounted for about half of the increase in November.
PCE prices decreased 0.2 percent in November after remaining flat in October. Excluding food and energy, PCE prices remained flat in November after increasing 0.2 percent in October.
Personal saving rate
Personal saving as a percent of DPI was 4.4 percent in November and 4.6 percent in October.
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Real gross domestic product (GDP) increased 5.0 percent in the third quarter of 2014, according to the “third” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 4.6 percent.
The increase in GDP in the third quarter reflected the following:
• Consumer spending increased 3.2 percent, compared with 2.5 percent in the second quarter. Spending on both goods and services increased.
• Business investment rose, notably in transportation equipment and industrial equipment as well as in intellectual property products.
• Exports of goods increased; industrial supplies and materials was the largest contributor.
• Federal government spending increased, mainly national defense spending.
The 1.1 percentage points upward revision to the GDP growth rate reflected the following:
• An upward revision to consumer spending, reflecting upward revisions to health care and recreation services.
• An upward reward revision to business investment, mainly to structures and intellectual property products.
• An upward revision to private inventory investment by wholesale trade industries, notably the nondurable
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Corporate profits increased 3.1 percent at a quarterly rate in the third quarter after increasing 8.4 percent in the second quarter.
• Profits of domestic nonfinancial corporations increased 2.5 percent after increasing 11.9 percent.
• Profits of domestic financial corporations increased 3.6 percent after increasing 8.0 percent.
• Rest of the world profits increased 4.2 percent after decreasing 0.9 percent.
Over the last 12 months, corporate profits rose 1.4 percent.
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