Archive for the 'GDP' Category



GDP Increases in Fourth Quarter

Real gross domestic product (GDP) increased 2.2 percent in the fourth quarter of 2014, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was the same in the “second” estimate released in February. In the third quarter, real GDP increased 5.0 percent.

Fourth-quarter GDP highlightsQ2Q March27
Consumer spending more than accounted for the increase in GDP, rising 4.4 percent, compared with 3.2 percent in the third quarter. Consumer spending on both goods and services increased in the fourth quarter.

Other contributors to growth:

  • Business investment increased, notably in intellectual property products.
  • Exports of goods and services increased; foods, feeds, and beverages was the largest contributor.

Offsetting the contributions to growth:

  • Imports of goods and services increased, notably of consumer goods (except food and autos) as well as petroleum and   products.
  • Federal government spending on national defense declined.

Fourth-quarter revisions
While the third estimate of real GDP growth was the same as the second estimate, several components were revised. Exports of services were revised up, mainly in travel. Consumer spending was also revised up, notably in health care. Inventory investment was revised down.

For more information, see the technical note.

Fourth-quarter corporate profitsQ2Q Corporate Profits March27
Profits fell 1.4 percent at a quarterly rate, after rising 3.1 percent in the third quarter.

Profits of nonfinancial corporations rose 1.4 percent, profits of financial corporations fell 2.7 percent, and profits from the rest of the world fell 8.8 percent.

Annual corporate profits
During 2014, corporate profits fell 0.8 percent, after rising 4.2 percent during 2013.

Profits of nonfinancial corporations rose 2.8 percent, profits of financial corporations fell 8.4 percent, and profits from the rest of the world fell 2.2 percent.

For more, see the full report.

Travel and Tourism Spending Accelerated in the Fourth Quarter of 2014

Real spending on travel and tourism accelerated in the fourth quarter of 2014, increasing at an annual rate of 4.5 percent after increasing 3.4 percent (revised) in the third quarter.  By comparison, real gross domestic product (GDP) decelerated, increasing 2.2 percent (second estimate) in the fourth quarter after increasing 5.0 percent. For the year, real spending on travel and tourism increased 2.5 percent in 2014 after increasing 3.6 percent in 2013. By comparison, real GDP increased 2.4 percent in 2014 after increasing 2.2 percent in 2013.

The leading contributors to the acceleration in the fourth quarter were “passenger air transportation” and “recreation and entertainment.” “Passenger air transportation” turned up, increasing 1.7 percent in the fourth quarter after decreasing 4.5 percent in the third quarter. “Recreation and entertainment” also turned up, increasing 6.2 percent after decreasing 0.9 percent. Partially offsetting these upturns, “traveler accommodations” turned down, decreasing 1.5 percent in the fourth quarter after increasing 8.3 percent.

Real Tourism Spending March 18

GDP increases in Fourth Quarter

Real gross domestic product (GDP) increased 2.6 percent in the fourth quarter of 2014, according to the “advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 5.0 percent. For the full year 2014, real GDP rose 2.4 percent after rising 2.2 percent in 2013.

Fourth-quarter GDP highlights
The increase in GDP in the fourth quarter reflected the following:

  • Consumer spending increased 4.3 percent, compared with 3.2 percent in the third quarter. Spending on both goods and services increased in the fourth quarter.
  • Inventory investment rose, notably by wholesale trade industries and manufacturing industries.
  • Exports of goods and services increased; foods, feeds, and beverages was the largest contributor.
  • Business investment also increased, mainly in intellectual property products.Q2Q Growth in Real GDP Jan30

In contrast, imports, a subtraction in the calculation of GDP, increased.

Gross domestic purchases prices
Prices of goods and services purchased by U.S. residents decreased 0.3 percent in the fourth quarter, after increasing 1.4 percent in the third quarter. Energy prices declined sharply in the fourth quarter. Excluding energy and food, prices increased 0.7 percent in the fourth quarter and 1.6 percent in third quarter.

Personal income and personal saving
Real disposable personal income—personal income adjusted for taxes and inflation—rose 3.8 percent in the fourth quarter after rising 2.0 percent in the third quarter. Personal saving as a percentage of disposable personal income was 4.6 percent in the fourth quarter.

Annual GDP highlights
The increase in GDP for 2014 reflected the following:

  • Consumer spending increased; spending on both services and goods increased.
  • Business investment increased, notably in equipment and structures.
  • Exports of goods increased.Annual Real GDP GrowthJan30

Prices of goods and services purchased by U.S. residents increased 1.4 percent in 2014 after increasing 1.3 percent in 2013.

Read the full report.