Real gross domestic product (GDP) increased 4.2 percent in the second quarter of 2014, according to the “second” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 2.1 percent. The second-quarter growth rate was revised up 0.2 percentage point from the “advance” estimate released in July.
The upturn in real GDP growth was primarily driven by the following:
- Exports, mainly goods exports, increased after decreasing in the first quarter.
- Nonfarm inventory investment by motor vehicle dealers turned up.
- Consumer spending, notably motor vehicles and parts, increased more than in the first quarter.
In addition, business investment picked up, and state and local government spending increased after decreasing in the first quarter.
In contrast to these contributions, imports (a subtraction in the calculation of GDP) were higher in the second quarter than in the first quarter.
The 0.2 percentage point revision to second-quarter GDP growth primarily reflected an upward revision to business investment and a downward revision to imports. These revisions were partly offset by a downward revision to inventory investment.
See the Technical Note for more information.
BEA’s featured measure of corporate profits increased 8.0 percent at a quarterly rate in the second quarter after decreasing 9.4 percent in the first quarter. The second-quarter increase was the largest since the third quarter of 2010.
- Profits of nonfinancial corporations rose 10.6 percent after falling 7.4 percent in the first quarter.
- Profits of financial corporations rose 7.3 percent after falling 17.1 percent.
- Profits from the rest of the world rose 1.2 percent after falling 6.1 percent.
Over the last 12 months, corporate profits fell 0.3 percent.
Read the full report.
Published August 14, 2014
BEA News , GDP , GDP by State
BEA’s annual gross domestic product by state report provides a crucial look into the health of states’ economies. Soon businesses, consumers, and policymakers will get a sneak peak at a more timely and frequent version of the report.
On August 20, we will release a quarterly look at state economic performance broken out by industry for the years 2005-2013. Like its annual cousin, this prototype quarterly GDP by state report will be conceptually consistent with BEA’s national data on economic output, allowing for comparisons across geographies and time.
In addition to the economic activity of each state, these quarterly statistics will provide more information on how states’ industries are faring. For instance, according to our most recent annual report on state economic growth, released on June 11, non-durable goods manufacturing contributed 2.65 percentage points to overall growth in Louisiana. Using quarterly data, one can investigate whether this increase in activity was sustained over all four quarters.
We are releasing these statistics for review and comment by data users. After getting their feedback, the goal is to start producing quarterly GDP by state statistics on a regular basis in 2015. Quarterly GDP by state statistics will provide a first read on state-level activity for a quarter within five to six months after the close of that quarter.
Quarterly GDP by state statistics can also build a clearer picture of the overall U.S. economy. By providing an earlier indication of what states are experiencing in terms of economic activity, these statistics can provide more insight into the geographic pattern of national economic performance.
For example, using quarterly GDP by state statistics, one can investigate whether key industries in some states were showing declines even before the national downturn that began in late 2007.
These new estimates are just one way that BEA is innovating to better measure the 21st Century economy. On August 7, we released prototype estimates of consumer spending by state. Earlier this year, we introduced real (inflation-adjusted) estimates of personal income for states and metropolitan areas and new quarterly statistics on GDP broken out by industry. Providing businesses and individuals with new data tools like these is a priority of the Commerce Department’s “Open for Business Agenda.”