Archive for the 'Corporate Profits' Category

First-Quarter GDP Revised Up

Real gross domestic product (GDP) decreased 0.2 percent in the first quarter of 2015, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was revised up 0.5 percentage point from the “second” estimate released in May. In the fourth quarter of 2014, real GDP increased 2.2 percent.June 24 pt 2

GDP highlights
The first-quarter decline in real GDP reflected declines in exports of goods, notably capital goods as well as autos and parts; in business investment, notably in mining exploration, shafts, and wells; and in state and local government spending.

Partly offsetting the contributions to the decline in GDP, consumer spending on services rose, notably on health care and on housing and utilities. Also, inventory investment and housing investment rose.

Revisions
The percent change in first-quarter real GDP was revised up, mainly reflecting up revisions to exports, consumer spending, inventory investment, business investment, and state and local government spending. Partly offsetting these revisions, imports was revised up.

For more information, see the technical note.

Personal income and personal saving
Real disposable personal income (DPI) – personal income adjusted for inflation and taxes – increased 5.3 percent in the first quarter, compared with 4.1 percent in the fourth quarter. Personal saving as a percentage of current-dollar DPI was 5.4 percent, compared with 4.7 percent in the fourth quarter.

GDP June 24

Corporate profits
Corporate profits decreased 5.2 percent at a quarterly rate in the first quarter after decreasing 1.4 percent in the fourth quarter of 2014.

  • Profits of domestic nonfinancial corporations fell 6.1 percent after rising 1.4 percent.
  • Profits of domestic financial corporations fell 0.5 percent after falling 2.7 percent.
  • Profits from the rest of the world fell 7.7 percent after falling 8.8 percent.

Over the last 4 quarters, corporate profits increased 4.5 percent.

For more information, read the full report.

First-Quarter GDP Revised Down: “Second” Estimate of GDP

Real gross domestic product (GDP) decreased 0.7 percent in the first quarter of 2015, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was revised down 0.9 percentage point from the “advance” estimate released in April. In the fourth quarter of 2014, real GDP increased 2.2 percent.

GDP highlightsq2q real gdp may 29
The first-quarter decline in real GDP reflected declines in the following:

  • Goods exports, notably of capital goods and of autos and parts.
  • Business investment, notably in mining exploration, shafts, and wells.
  • State and local government spending.

Offsetting these contributions to the decrease in first-quarter GDP:

  • Consumer spending on services increased, notably on health care and on housing and utilities.
  • Nonfarm inventory investment also rose, notably in wholesale trade durable goods-related industries.

Revisions
The percent change in first-quarter real GDP was revised down, mainly reflecting an upward revision to imports and downward revisions to inventory investment and to consumer spending. Offsetting these revisions, residential investment was revised up. For more information, see the technical note.

Corporate profitsq2q corp may29
Corporate profits decreased 5.9 percent at a quarterly rate in the first quarter after decreasing 1.4 percent in the fourth quarter of 2014.

  • Profits of domestic nonfinancial corporations decreased 7.7 percent after increasing 1.4 percent.
  • Profits of domestic financial corporations decreased 0.6 percent after decreasing 2.7 percent.
  • Profits from the rest of the world decreased 6.0 percent after decreasing 8.8 percent.

Over the last 4 quarters, corporate profits increased 3.7 percent.

For more information, read the full report.

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.

Revisions
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.