U.S. Bureau of Economic Analysis

Real gross domestic product (GDP) accelerated in the first quarter of 2013, increasing 2.5 percent after increasing 0.4 percent in the fourth quarter of 2012, according to estimates released by the Bureau of Economic Analysis.

First-quarter highlights
The pick up in real GDP growth was largely accounted for by a rebound in inventory investment, mainly reflecting an upturn in manufacturing and a smaller decrease in wholesale trade. Farm inventory investment also picked up. In addition, consumer spending accelerated, primarily reflecting a pick up in spending for services (mainly household utilities), and exports rebounded, mainly due to upturns in foods, feeds, and beverages and in nonautomotive capital goods.

In contrast, imports turned up, reflecting in part an upturn in nonpetroleum industrial supplies and materials. Also, business investment slowed, reflecting a slowdown in equipment and software (mainly in information processing) and a downturn in structures.

Personal income and personal saving
Real disposable personal income, which adjusts for inflation and taxes, fell 5.3 percent in the first quarter after rising 6.2 percent in the fourth quarter. The change reflected the following:
• A downturn in dividend payments, after companies accelerated payments to the fourth quarter.
• An acceleration in contributions for social insurance, which are subtracted when calculating personal income, due to the expiration of the “payroll tax holiday.”
The personal saving rate—saving as a percent of disposable personal income—was 2.6 percent in the first quarter, compared with 4.7 percent in the fourth quarter.

Prices
Prices of goods and services purchased by U.S. residents slowed in the first quarter, increasing 1.1 percent after increasing 1.6 percent in the fourth quarter of 2012.

Energy prices turned down, and food prices slowed slightly. Prices less food and energy increased 1.3 percent after increasing 1.2 percent.

For more on GDP, read the full report.

Real gross domestic product (GDP) increased 0.4 percent in the fourth quarter of 2013 after increasing 3.1 percent in the third quarter, according to estimates released today by the Bureau of Economic Analysis. The fourth-quarter growth rate was revised up 0.3 percentage point from the second estimate, which was released in February. Final sales, a measure that excludes changes in the volatile inventory component of GDP, increased 1.9 percent in the fourth quarter after increasing 2.4 percent in the third quarter.

Highlights
The fourth-quarter slowdown in real economic growth largely reflected downturns in inventory investment and federal government national defense spending. In addition, exports fell in the fourth quarter after rising in the third quarter.

Offsetting these contributions to the slowdown in growth:
• Business investment turned up, as spending on equipment and software as well as on structures rebounded.
• Imports decreased more than in the third quarter.
• Consumer spending for durable goods picked up.

Fourth-quarter revisions
The 0.3-percentage point upward revision to the third estimate of real GDP mainly reflected upward revisions to business investment in structures and to exports of both goods and services. In contrast, consumer spending for services was revised down.

Corporate profits
For 2012, corporate profits rose 6.8 percent at an annual rate, compared with 7.3 percent in 2011. Profits of nonfinancial corporations rose 8.1 percent, profits of financial corporations rose 13.5 percent, and profits from the rest of the world fell 2.0 percent.

For the fourth quarter, profits grew 2.3 percent at a quarterly rate. Profits of nonfinancial corporations rose 2.3 percent in the fourth quarter, and profits of financial corporations fell 0.8 percent. Profits from the rest of the world rose 5.6 percent.

In the fourth quarter, dividends increased $124.3 billion, compared with $12.8 billion in the third quarter. The large increase reflected special and accelerated payments made by corporations in anticipation of expected tax law changes.

For more, here’s the full report.

Real gross domestic product (GDP) increased 0.1 percent in the fourth quarter of 2012 after increasing 3.1 percent in the third quarter, according to estimates released by the Bureau of Economic Analysis. The fourth-quarter growth rate was revised up 0.2 percentage point from the advance estimate released in January. Real GDP increased 2.2 percent in 2012 after increasing 1.8 percent in 2011.

Fourth-quarter highlights
The following contributed to the deceleration in real GDP growth:
• Inventory investment turned down, largely resulting from downturns in inventory investment in manufacturing industries and wholesale trade.
• Federal government spending on defense declined after rising in the third quarter.
• Exports turned down, mainly reflecting downturns in nonautomotive capital goods as well as foods, feeds, and beverages.

In contrast, imports decreased more than in the third quarter. Business investment turned up, primarily reflecting an upturn in equipment and software. Consumer spending also picked up slightly, mainly on financial services and insurance as well as autos and parts.

Fourth-quarter revisions
Net exports was revised up, reflecting an upward revision to exports and a downward revision to imports. Nonresidential fixed investment was also revised up, primarily due to an upward revision to structures. Inventory investment was revised down, as were state and local government spending and consumer spending.

2012 highlights
Real GDP increased 2.2 percent in 2012 after increasing 1.8 percent in 2011. The pickup in growth in 2012 mainly reflected:
• A deceleration in imports, mainly in nonautomotive capital goods and in petroleum and related products.
• An upturn in residential housing.
• An upturn in inventory investment.
• A smaller decrease in state and local government spending.
The contributions were partly offset by slowdowns in consumer spending, mainly on services, and in exports.

For more, here’s the full report.