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GDP Growth Slows In Fourth Quarter

Real gross domestic product (GDP) increased 2.6 percent in the fourth quarter of 2013, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was 0.2 percentage point more than the “second” estimate released in February. In the third quarter, the growth rate was 4.1 percent.

Fourth-quarter GDP highlightsGDP_4q_3rd_2013
Consumer spending rose 3.3 percent, the highest since the fourth quarter of 2010, reflecting spending on housing and utilities, health care, and food services and accommodations. In the  third quarter, consumer spending rose 2.0 percent. Exports also accelerated in the fourth quarter.

These accelerations were more than offset, however, by a downturn in inventory investment, a  larger decrease in federal government spending, and a downturn in housing investment.

GDP revisions
The upward revision to real GDP growth reflected the incorporation of newly available source data. Consumer spending was revised up (mainly services), while business investment (mainly intellectual property products) and inventory investment were revised down.

Personal income and personal saving
Real disposable personal income (DPI)—personal income adjusted for inflation and taxes—increased 0.8 percent in the fourth quarter, compared with 3.0 percent in the third quarter. Personal saving as a percent of DPI was 4.3 percent in the fourth quarter, compared with 4.9 percent in the third quarter.

Fourth-quarter corporate profitsCorpProfits4q_2013
Profits grew 2.2 percent at a quarterly rate, compared with 1.9 percent in the third quarter.
Profits of nonfinancial corporations rose 1.5 percent, profits of financial corporations rose 1.3 percent, and profits from the rest of the world rose 5.5 percent.

Annual corporate profits
In 2013, corporate profits rose 4.6 percent at an annual rate, compared with 7.0 percent in 2012. Profits of nonfinancial corporations rose 5.2 percent, profits of financial corporations rose 8.2 percent, and profits from the rest of the world fell 0.7 percent.

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Value of Both Foreign Investments in the United States and U.S. Investments Abroad Increased in Fourth Quarter 2013

The U.S. net international investment position was -$4,577.5 billion (preliminary) at the end of the fourth quarter of 2013 as the value of foreign investments in the United States exceeded the value of U.S. investments abroad. At the end of the third quarter, the net position was -$4,171.8 billion (revised).

USDIAandFDIUS_4q_2013

• The $405.7 billion decrease in the net position reflected a $777.8 billion increase in the value of foreign-owned assets in the United States that exceeded a $372.1 billion increase in the value of U.S.-owned assets abroad.
• The U.S. net international investment position decreased 9.7 percent in the fourth quarter, compared with a 6.4-percent increase in the third quarter and an average quarterly decrease of 6.3 percent from the first quarter of 2011 through the third quarter of 2013.
• The decrease in the net position in the fourth quarter was attributable to the valuation changes of foreign-owned assets in the United States that were $211.7 billion larger than the valuation changes of U.S.-owned assets abroad, and net inflows of $194.0 billion.
• U.S.-owned assets abroad were $21,963.8 billion at the end of the fourth quarter compared with $21,591.7 billion at the end of the third quarter.
• Foreign-owned assets in the United States were $26,541.3 billion at the end of the fourth quarter compared with $25,763.5 billion at the end of the third quarter.

Read the full report.

Value of Both Foreign Investments in the United States and U.S. Investments Abroad Increased in 2013

The U.S. net international investment position was -$4,577.5 billion (preliminary) at the end of 2013 as the value of foreign investments in the United States exceeded the value of U.S. investments abroad. At the end of 2012, the net position was -$3,863.9 billion.

FDIUSandUSDIA2013

The $713.6 billion decrease in the net position from the end of 2012 to the end of 2013 reflected a $1,039.8 billion increase in the value of foreign-owned assets in the United States that exceeded a $326.1 billion increase in the value of U.S.-owned assets abroad.
• The U.S. net international investment position decreased 18.5 percent from the end of 2012 to the end of 2013, compared with a 3.6-percent decrease from the end of 2011 to the end of 2012.
• The decrease in the net position in 2013 was attributable to the valuation changes of foreign-owned assets in the United States that were $362.4 billion larger than the valuation changes of U.S.-owned assets abroad, and net inflows of $351.2 billion.
• U.S.-owned assets abroad were $21,963.8 billion at the end of 2013 compared with $21,637.6 billion at the end of 2012.
• Foreign-owned assets in the United States were $26,541.3 billion at the end of 2013 compared with $25,501.5 billion at the end of 2012.

Read the full report.