Personal income rose 0.2 percent in October, the same increase as in September. Wages and salaries, the largest component of personal income, rose 0.3 percent in October after rising 0.2 percent in September.
Current-dollar disposable personal income (DPI), after-tax income, rose 0.2 percent in October after rising 0.1 percent in September.
Real DPI, income adjusted for taxes and inflation, increased 0.1 percent in October, the same increase as in September.
Real consumer spending, spending adjusted for price changes, increased 0.2 percent in October after remaining flat in September. Spending on nondurable goods increased 0.5 percent in October after decreasing 0.3 percent in September.
PCE prices increased 0.1 percent in October, the same increase as in September. Excluding food and energy, PCE prices increased 0.2 percent in October after increasing 0.1 percent in September.
Personal saving rate
Personal saving as a percent of DPI was 5.0 percent in October, the same as in September.
Read the full report.
Real gross domestic product (GDP) increased 3.9 percent in the third quarter of 2014, according to the “second” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 4.6 percent.
The increase in GDP in the third quarter reflected the following:
- Consumer spending increased 2.2 percent. Spending on goods and services both increased.
- Business investment rose, notably equipment and intellectual property products.
- Federal government spending increased, mainly national defense spending.
- Exports of goods increased, notably industrial supplies and materials.
In contrast, inventory investment declined in the third quarter.
The 0.4 percentage point upward revision to the GDP growth rate was more than accounted for by an upward revision to nonfarm inventory investment, notably in the wholesale trade and retail trade industries. Consumer spending on goods and business investment in equipment also were revised up. Partly offsetting these upward revisions, exports were revised down, and imports were revised up.
For more information, see the technical note.
Corporate profits increased 2.1 percent at a quarterly rate in the third quarter after increasing 8.4 percent in the second quarter.
- Profits of domestic nonfinancial corporations increased 1.8 percent after increasing 11.9 percent.
- Profits of domestic financial corporations increased 4.5 percent after increasing 8.0 percent.
- Profits from the rest of the world increased 0.3 percent after decreasing 0.9 percent.
Over the last 12 months, corporate profits rose 0.4 percent.
Read the full report.
The Bureau of Economic Analysis (BEA) has released preliminary statistics on the activities of U.S. affiliates of foreign multinational enterprises (MNEs) in 2012. These statistics are based on the results of the 2012 Benchmark Survey of Foreign Direct Investment in the United States (“inward” direct investment.)
These statistics cover the finances and operations of U.S. affiliates of foreign MNEs—including balance sheet and income statement details, employment and employee compensation, capital expenditures, trade in goods, and expenditures for research and development.
The activities of majority-owned U.S. affiliates are featured in the statistics. Less detailed statistics are also presented for all U.S. affiliates (both majority owned and minority owned). BEA also produces statistics that cover the domestic and foreign activities of U.S. MNEs, that is enterprises involved in “outward” direct investment. Jointly, these statistics and the statistics on the activities of U.S. affiliates are referred to as statistics on the activities of multinational enterprises (AMNEs).
The current-dollar value added of majority-owned U.S. affiliates, a measure of their contribution to U.S. gross domestic product, totaled $773.8 billion in 2012. Current-dollar value added rose 3.7 percent in 2012, following larger increases in 2010 and 2011, but it grew less rapidly than the value added of all U.S. private industry in 2012. As a result, affiliates’ share of U.S. private industry value added decreased from 6.2 percent in 2011 to 6.1 percent in 2012. Majority-owned U.S. affiliates employed 5.8 million workers in 2012, an increase of 1.3 percent, following larger increases in 2010 and 2011. The share of U.S. private industry employment accounted for by these affiliates was 5.0 percent, down from 5.1 percent in 2011.
Some additional highlights of the statistics on majority-owned U.S. affiliates for 2012:
- As in previous years, affiliates with ultimate beneficial owners (UBO) in seven countries—Canada, France, Germany, the Netherlands, Switzerland, the United Kingdom, and Japan—accounted for nearly three-fourths of the value added by all majority-owned U.S. affiliates.
- Exports of goods by affiliates rose 5 percent.
- Imports of goods by affiliates rose 4 percent. About 60 percent of the goods imported by affiliates were intended for resale without further processing.
- Research and development (R&D) performed by affiliates rose 6 percent.
For more information, read the full article in the November Survey of Current Business. Click here for all the data tables.