Archive for the 'GDP' Category

GDP Growth Accelerates in Second Quarter

Real gross domestic product (GDP) increased 2.5 percent in the second quarter of 2013 after increasing 1.1 percent in the first quarter, according to the “third” estimate released by the Bureau of Economic Analysis (BEA). The second-quarter growth rate was the same as the “second” estimate released in August.gdp_1_0925

GDP growth highlights
The second-quarter acceleration reflected upturns in business investment, mainly in power and communications structures, and in goods exports, mainly in nonautomotive capital goods and in nonautomotive consumer goods.

In contrast, imports picked up, farm inventory investment slowed, and consumer spending decelerated, mainly nondurable goods and services.

The second-quarter GDP growth rate reflected offsetting revisions. Inventory investment was revised down, notably retail trade outlets (mainly food and beverage stores) and “other” industries (mainly information industries). Exports of goods and services were also revised down. In contrast, state and local government spending was revised up, notably gross investment in structures.

Disposable personal income and personal saving
Real disposable personal income—personal income adjusted for taxes and inflation—rose 3.5 percent after falling 7.9 percent in the first quarter. (The steep first-quarter decline reflected one-time accelerated dividend and wage payments made in the fourth quarter of 2012.)

Personal saving as a percentage of disposable income was 4.5 percent in the second quarter, compared with 4.1 percent in the first quarter.

Corporate profitsgdp_2_0925
BEA’s featured measure of corporate profits rebounded in the second quarter, increasing 3.3 percent after decreasing 1.3 percent in the first quarter.

• Profits of nonfinancial corporations rose 3.2 percent after falling 0.3 percent.
• Profits of financial corporations increased 5.7 percent after decreasing 0.9 percent.
• Profits from the “rest of the world” rose 1.2 percent after falling 4.7 percent.

Compared with the second quarter a year ago, corporate profits rose 4.5 percent.

For more on GDP, read the full report.

Economic Growth Widespread Across Metropolitan Areas in 2012

• Metropolitan areas accounted for nearly 91 percent of national current-dollar gross domestic product (GDP). The ten largest metropolitan areas accounted for 34 percent of national GDP in 2012, while the smallest 79 metropolitan areas accounted for less than 2 percent of national GDP.0917blog

• Real GDP grew in 305 metropolitan areas. Durable-goods manufacturing, trade, and financial activities led growth in 2012. Durable-goods manufacturing and financial activities contributed more than 50 percent to real GDP growth in 80 and 53 metropolitan areas, respectively.

• Trade contributed to real GDP growth in 363 metropolitan areas. Growth was strongest for metropolitan areas in the Southwest regions such as Odessa, TX.

• Financial activities contributed more than 2 percentage points to overall growth in real GDP in Missoula, MT; Eau Claire, WI; Bloomington, IL; Minneapolis-St. Paul-Bloomington, MN-WI; and Ocean City, NJ.

• In 2012, San Francisco-Oakland-Hayward, CA was the fastest growing metropolitan area (7.4 percent) among economies with real GDP of more than $100 billion. Midland, TX, grew the fastest (14.4 percent) of the metro areas with real GDP of $10–100 billion. Odessa, TX, grew the fastest (14.1 percent) of the metro areas with real GDP of less than $10 billion.

For more information on GDP by metropolitan area, read the full report.

American Samoa’s Economy Grows in 2011, Shrinks in 2012

The estimates of gross domestic product (GDP) for American Samoa show that real GDP, adjusted to remove price changes, increased 0.5 percent in 2011 and decreased 2.4 percent in 2012.

For comparison, real GDP for the United States (excluding the territories) increased 1.8 percent in 2011 and 2.8 percent in 2012.

In 2011, the increase in real GDP reflected an increase in territorial government spending that was partly offset by a decrease in consumer spending. The growth in government spending reflected an increase in investment that was largely due to continued reconstruction efforts following the 2009 earthquake and tsunami. Consumer spending fell as residents faced increases in prices and decreases in compensation.

In 2012, the downturn in real GDP reflected a continued decrease in consumer spending and a downturn in territorial government spending. Activities associated with the tuna canning industry offset some of the declines in consumer spending and government spending. Exports of goods, primarily canned tuna, increased. Private construction activity also increased, reflecting the construction of Tri Marine’s cold storage facility.

Read the full report here.