Archive for the 'GDP' Category



GDP Growth Decelerates in Fourth Quarter

Real gross domestic product (GDP) increased 2.4 percent in the fourth quarter of 2013, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.8 percentage point less than the “advance” estimate released in January. In the third quarter, the growth rate was 4.1 percent.

gdp1Fourth-quarter GDP highlights
The slowdown in real GDP growth reflected a slowdown in inventory investment. GDP less inventory investment (final sales of domestic product) rose 2.3 percent, almost as much as the 2.5 percent growth in the third quarter.

Also contributing to the slowdown: a larger decrease in federal government spending and downturns in housing investment and in state and local government spending.

In contrast, exports, consumer spending, and business investment each accelerated.

Fourth-quarter revisions
The revision to real GDP growth reflected the incorporation of newly available, higher quality source data. The following were revised down:

• Consumer spending on both goods and services; the revisions were widespread.
• Inventory investment, led by wholesale trade industries.
• Exports, mainly nonautomotive capital goods and consumer goods.
• State and local government spending, mainly investment in structures.

In contrast, business investment was revised up, mainly in equipment and in software.

gdp2Annual GDP highlights
For the full year 2013, real GDP increased 1.9 percent, the same as the previous estimate. In 2012, the growth rate was 2.8 percent.

• Business investment slowed, reflecting slower growth in structures (mainly power and communication) and in equipment (mainly transportation).
• Federal government spending declined more in 2013 than in 2012.
• Consumer spending on services slowed.

In contrast, imports slowed, state and local government spending declined less, and consumer spending on goods accelerated.

For more on GDP, read the full report.

BEA Readies 2014 Rollout of New Economic Statistics

BEA is releasing several new statistical products this year, part of an ongoing effort to better measure the dynamic U.S. economy and give businesses, policymakers and ordinary Americans additional tools to make informed decisions. Each report will be released at 8:30 a.m. eastern time on the date indicated.

REAL PERSONAL INCOME FOR STATE AND METROPOLITAN AREAS
• Annual report covers 2012 back to 2008
• Release date: April 24
• Report provides statistics on people’s incomes adjusted for inflation and broken out by state and metro area
• Adjusting regional personal income data for differences in the cost of consumer goods and services provides insight into the relative purchasing power of consumers in different states and metro areas
• BEA has previously released prototype statistics of this kind. This year, for the first time, BEA will start releasing annual reports on a regular basis

QUARTERLY GDP BY INDUSTRY
• Quarterly report covers the fourth quarter of 2013 back to the first quarter of 2005. Report also provides annual statistics for 2013
• Release date: April 25
• Statistics show how much how much economic activity is generated by different industries and how much individual industries contributed to overall U.S. economic growth
• For the first time, BEA is releasing GDP by industry statistics on a quarterly basis. Previously, these statistics were available only annually
• Quarterly statistics will provide a more timely snapshot of how individual industries are faring and can serve as a better barometer for potential turning points in the U.S. economy

PERSONAL CONSUMPTION EXPENDITURES BY STATE
• Annual report covers 2012 back to 1997
• Release date: Aug. 7
• Prototype statistic, meaning refinements in methodology may be made before this becomes a regular BEA product
• BEA, for the first time, will produce annual statistics on consumer spending broken out by state. Currently, BEA provides consumer spending figures only on the national level
• These statistics will offer for the first time a detailed look at consumer behavior in each of the country’s 50 states. Report will provide a gauge of how consumers in different states are faring, offering a richer picture of economic activity across entire United States

QUARTERLY GDP BY STATE
• Quarterly report covers the fourth quarter of 2013 back to the first quarter of 2007
• Release date: Aug. 20
• Prototype statistic, meaning refinements in methodology may be made before this becomes a regular BEA product
• BEA, for the first time, will produce quarterly statistics showing overall economic activity generated by each state as well as the main forces either supporting or restraining growth. Currently, BEA provides GDP-by-state statistics only at the national level
• These statistics will offer a more up-to-date picture of how states’ economies are faring and will provide a more detailed view of economic activity across the entire United States. The statistics will also serve as a better barometer for potential turning points for the overall U.S. economy

GDP Growth Slows in Fourth Quarter

Real gross domestic product (GDP) increased 3.2 percent in the fourth quarter of 2013, according to the “advance” estimate released by the Bureau of Economic Analysis (BEA). In the third quarter, the growth rate was 4.1 percent. For the full year 2013, real GDP increased 1.9 percent, compared with 2.8 percent in 2012.gdp1

Fourth-quarter GDP highlights
The slowdown in real GDP growth mainly reflected a slowdown in inventory investment. In fact, GDP less inventory investment (real final sales of domestic product) accelerated, rising 2.8 percent in the fourth quarter, compared with 2.5 percent in the third quarter. Also contributing to the economic slowdown: a larger decrease in federal government spending, a downturn in housing investment, a slowdown in state and local government spending, and a slowdown in business investment.

Offsetting the contributions to the slowdown:
• Net exports accelerated, reflecting a pickup in exports and a slowdown in imports.
• Consumer spending accelerated, reflecting a pickup in spending on household services, notably household utilities as well as food services and accommodations.

Gross domestic purchases prices
Prices of goods and services purchased by U.S. residents rose 1.2 percent in the fourth quarter after rising 1.8 percent in the third quarter. Both energy prices and food prices turned down in the fourth quarter. Excluding these items, prices rose 1.7 percent after rising 1.5 percent.

Government shutdown
The full effects of the federal government shutdown in October could not be quantified. However, BEA was able to estimate the effects of the reduction in hours worked by federal employees, which reduced GDP growth by 0.3 percentage point. More informationgdp2

Annual GDP highlights
The slowdown in real GDP growth in 2013 reflected the following:
• Business investment slowed, reflecting slower growth in both structures (mainly power and communication) and equipment (mainly transportation).
• Federal government spending declined more in 2013 than in 2012.
• Consumer spending on services slowed, rising 1.2 percent after rising 1.6 percent.

In contrast, state and local government spending declined less in 2013 than in 2012, and consumer spending on goods accelerated.

For more on GDP, read the full report.