Posts Tagged 'Corporate Profits'

First-Quarter GDP Revised Down: “Second” Estimate of GDP

Real gross domestic product (GDP) decreased 0.7 percent in the first quarter of 2015, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was revised down 0.9 percentage point from the “advance” estimate released in April. In the fourth quarter of 2014, real GDP increased 2.2 percent.

GDP highlightsq2q real gdp may 29
The first-quarter decline in real GDP reflected declines in the following:

  • Goods exports, notably of capital goods and of autos and parts.
  • Business investment, notably in mining exploration, shafts, and wells.
  • State and local government spending.

Offsetting these contributions to the decrease in first-quarter GDP:

  • Consumer spending on services increased, notably on health care and on housing and utilities.
  • Nonfarm inventory investment also rose, notably in wholesale trade durable goods-related industries.

Revisions
The percent change in first-quarter real GDP was revised down, mainly reflecting an upward revision to imports and downward revisions to inventory investment and to consumer spending. Offsetting these revisions, residential investment was revised up. For more information, see the technical note.

Corporate profitsq2q corp may29
Corporate profits decreased 5.9 percent at a quarterly rate in the first quarter after decreasing 1.4 percent in the fourth quarter of 2014.

  • Profits of domestic nonfinancial corporations decreased 7.7 percent after increasing 1.4 percent.
  • Profits of domestic financial corporations decreased 0.6 percent after decreasing 2.7 percent.
  • Profits from the rest of the world decreased 6.0 percent after decreasing 8.8 percent.

Over the last 4 quarters, corporate profits increased 3.7 percent.

For more information, read the full report.

GDP Increases in Third Quarter: “Third” Estimate of GDP

Real gross domestic product (GDP) increased 5.0 percent in the third quarter of 2014, according to the “third” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 4.6 percent.

GDP highlightsgdp1
The increase in GDP in the third quarter reflected the following:
• Consumer spending increased 3.2 percent, compared with 2.5 percent in the second quarter. Spending on both goods and services increased.
• Business investment rose, notably in transportation equipment and industrial equipment as well as in intellectual property products.
• Exports of goods increased; industrial supplies and materials was the largest contributor.
• Federal government spending increased, mainly national defense spending.

Revisions
The 1.1 percentage points upward revision to the GDP growth rate reflected the following:
• An upward revision to consumer spending, reflecting upward revisions to health care and recreation services.
• An upward reward revision to business investment, mainly to structures and intellectual property products.
• An upward revision to private inventory investment by wholesale trade industries, notably the nondurable
goods industry.

For more information, see the technical note.

Corporate profitsgdp2
Corporate profits increased 3.1 percent at a quarterly rate in the third quarter after increasing 8.4 percent in the second quarter.
• Profits of domestic nonfinancial corporations increased 2.5 percent after increasing 11.9 percent.
• Profits of domestic financial corporations increased 3.6 percent after increasing 8.0 percent.
• Rest of the world profits increased 4.2 percent after decreasing 0.9 percent.

Over the last 12 months, corporate profits rose 1.4 percent.

For more, see the full report.

GDP Declines in First Quarter

GDP_5_29_14 Real gross domestic product (GDP) decreased 1.0 percent in the first quarter of 2014, according to the “second” estimate released today by the Bureau of Economic Analysis. In the fourth quarter of 2013, real GDP increased 2.6 percent.

First-quarter GDP highlights
The decline in real GDP was more than accounted for by a significant decline in inventory investment, notably by motor vehicle dealerships. In fact, GDP less inventory investment (real final sales of domestic product) rose 0.6 percent in the first quarter.

Declines in exports, in business investment, in state and local government spending, and in housing investment also contributed to the decrease in first-quarter real GDP.

In contrast, consumer spending increased, notably in health care and in home utilities.

Revisions
 First-quarter real GDP growth was revised down 1.1 percentage points from the advance estimate released in April, based on newly available source data.

  • Inventory investment was revised down, mainly in retail trade, in manufacturing, and in mining, utilities, and construction.
  • Imports were revised up, notably in foods, feeds, and beverages and in petroleum and related products. Partly offsetting this revision, exports were also revised up, notably in nonautomotive capital goods and in automotive vehicles, engines, and parts.

Corporate profitsProfits_5_29_14
BEA’s featured measure of corporate profits declined 9.8 percent in the first quarter, after increasing  2.2 percent in the previous quarter. The  decline was the largest since the fourth quarter of  2008.

  •  Profits of nonfinancial corporations fell 8.1  percent after rising 1.5 percent.
  • Profits of financial corporations fell 15.0 percent  after rising 1.3 percent.
  • Profits from the rest of the world fell 9.1 percent after rising 5.5 percent.

Over the last 4 quarters, corporate profits fell 3.0 percent.

Read the full report.