Archive for the 'BEA News' Category

GDP Increases in Third Quarter: “Third” Estimate of GDP

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.

GDP highlightsgdp1
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
goods industry.

For more information, see the technical note.

Corporate profitsgdp2
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.

For more, see the full report.

State Personal Income: Third Quarter 2014

State personal income growth averaged 1.0 percent in the third quarter of 2014, down from 1.2 percent in the second quarter. Growth in personal income–the sum of net earnings by place of residence, property income, and personal current transfer receipts–slowed in 38 states and in the District of Columbia. The percent change across states ranged from -0.2 percent in South Dakota (the only state with a decline) to 1.4 percent in Texas. Inflation, as measured by the national price index for personal consumption expenditures, slowed to 0.3 percent in the third quarter from 0.6 percent in the second quarter. 

Percent Change Dec19

State Personal Income Growth Dec19

Read the full report. 

Travel and Tourism Spending Decelerated in the Third Quarter of 2014

Real spending on travel and tourism decelerated in the third quarter of 2014, increasing at an annual rate of 1.3 percent after increasing 3.3 percent (revised) in the second quarter. Real gross domestic product (GDP) also decelerated, increasing 3.9 percent (second estimate) in the third quarter after increasing 4.6 percent.

The leading contributors to the deceleration in the third quarter were “passenger air transportation,” and “recreation and entertainment.” “Passenger air transportation” turned down, decreasing 7.2 percent in the third quarter after increasing 11.1 percent in the second quarter. “Recreation and entertainment” also turned down, decreasing 5.5 percent after increasing 4.1 percent. Partially offsetting these downturns, “traveler accommodations” turned up, increasing 8.3 percent in the third quarter after decreasing 0.9 percent.

Real Tourism Spending Dec18