Posts Tagged 'GDP'

GDP Increases in Second Quarter

Real gross domestic product (GDP) increased 3.9 percent in the second quarter of 2015, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was revised up 0.2 percentage point from the “second” estimate released in August. In the first quarter, real GDP increased 0.6 percent.

GDP highlights
The second-quarter increase in real GDP mainly reflected a rise in consumer spending. Spending on services rose, notably  on health care and food services and accommodations. Spending on nondurable goods also rose, as did spending on durable goods, notably on motor vehicles and parts. Q2Q Real GDP Sept25

Exports of goods also increased, notably industrial supplies and materials. Business investment, state and local government spending, and residential investment also rose.

Offsetting these contributions to GDP growth, imports, a subtraction in the calculation of GDP, increased.

The revision to second-quarter GDP growth reflected upward revisions to: consumer spending, mainly spending on services; business investment, notably in structures; and residential investment.

These contributions were partly offset by a downward revision to inventory investment.

For more information, see the technical note.

Corporate profits
Corporate profits increased 3.5 percent at a quarterly rate in the second quarter after decreasing 5.8 percent in the first quarter.profits sept 25

  • Profits of domestic nonfinancial corporations rose 1.9 percent after falling 5.3 percent.
  • Profits of domestic financial corporations rose 9.6 percent after falling 6.1 percent.
  • Profits from the rest of the world rose 2.9 percent after falling 6.9 percent.

Over the last 4 quarters, corporate profits increased 0.6 percent.

For more information, read the full report.

Widespread Growth in the Far West Region


  • Real GDP expanded in 44 of the 52 MSAs wholly contained in this region. Professional scientific, and technical services contributed the most to growth in real GDP for the region. This region accounts for 20.4 percent of the nation’s current-dollar GDP in professional, scientific, and technical services. By contrast, mining restrained growth in the region’s GDP.
  • Grants Pass, OR and Corvallis, OR experienced the largest upturns in real GDP growth due to growth in durable goods manufacturing and the government sector, respectively. Grants Pass, OR growth improved to 5.4 percent in 2014 from – 1.7 percent in 2013 (7.1 percentage points), while Corvallis, OR growth improved to -0.7 percent in 2014 from -7.1 percent in 2013 (6.4 percentage points).
  • Growth in real GDP ranged from -2.1 percent to 6.7 percent with the fastest growth occurring in San Jose-Sunnyvale-Santa Clara, CA and Bend-Redmond, OR. Growth in each of these metropolitan area was spurred by durable goods manufacturing and construction, respectively.
  • Los Angeles-Long Beach-Anaheim, CA and San Francisco-Oakland-Hayward, CA- the two largest metropolitan areas in the region, and the 2nd and 7th largest in the nation – experienced growth (2.3 percent and 5.2 percent, respectively), due to growth in real estate and rental and leasing and professional, scientific, and technical services, respectively.

Widespread Growth Across Metropolitan Areas

Metro GDP map

  • Real GDP increased in 282 of the nation’s 381 metropolitan areas in 2014, led by widespread growth in professional and business services; finance, insurance, real estate, rental, and leasing; and trade. Natural resources and mining also spurred strong localized growth in several metropolitan areas.
  • Professional and business services and finance, insurance, real estate, rental, and leasing contributed more than 50 percent to real GDP growth in 49 and 39 metropolitan areas, respectively.
  • Profession and business services contributed to growth in 314 of the nation’s 381 metropolitan areas in 2014, most notably in Midland, MI (4.56 percentage points) and San Francisco-Oakland-Hayward, CA (2.05 percentage points).
  • Mining in the Permian Basin and Cline formation led to notable total real GDP growth for Midland, TX (24.1 percentage points) and San Angelo, TX (11.4 percentage points). Mining in the Marcellus shale formation contributed significantly to the 9.5 percent increase in total real GDP for Wheeling, WV-OH.
  • In 2014, Dallas-Fort Worth-Arlington, TX was the fastest growing metropolitan area (8.5 percent) among economies with populations of 500,000 or more. Midland, TX grew the fastest (24.1 percent) of the metro areas with populations of less than 500,000.

For more information, read the full report.