Posts Tagged 'gross domestic product'

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.

GDP Growth Decelerates in Fourth Quarter

Real gross domestic product (GDP) increased 2.4 percent in the fourth quarter of 2013, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.8 percentage point less than the “advance” estimate released in January. In the third quarter, the growth rate was 4.1 percent.

gdp1Fourth-quarter GDP highlights
The slowdown in real GDP growth reflected a slowdown in inventory investment. GDP less inventory investment (final sales of domestic product) rose 2.3 percent, almost as much as the 2.5 percent growth in the third quarter.

Also contributing to the slowdown: a larger decrease in federal government spending and downturns in housing investment and in state and local government spending.

In contrast, exports, consumer spending, and business investment each accelerated.

Fourth-quarter revisions
The revision to real GDP growth reflected the incorporation of newly available, higher quality source data. The following were revised down:

• Consumer spending on both goods and services; the revisions were widespread.
• Inventory investment, led by wholesale trade industries.
• Exports, mainly nonautomotive capital goods and consumer goods.
• State and local government spending, mainly investment in structures.

In contrast, business investment was revised up, mainly in equipment and in software.

gdp2Annual GDP highlights
For the full year 2013, real GDP increased 1.9 percent, the same as the previous estimate. In 2012, the growth rate was 2.8 percent.

• Business investment slowed, reflecting slower growth in structures (mainly power and communication) and in equipment (mainly transportation).
• Federal government spending declined more in 2013 than in 2012.
• Consumer spending on services slowed.

In contrast, imports slowed, state and local government spending declined less, and consumer spending on goods accelerated.

For more on GDP, read the full report.

GDP Growth Slows in Fourth Quarter

Real gross domestic product (GDP) increased 3.2 percent in the fourth quarter of 2013, according to the “advance” estimate released by the Bureau of Economic Analysis (BEA). In the third quarter, the growth rate was 4.1 percent. For the full year 2013, real GDP increased 1.9 percent, compared with 2.8 percent in 2012.gdp1

Fourth-quarter GDP highlights
The slowdown in real GDP growth mainly reflected a slowdown in inventory investment. In fact, GDP less inventory investment (real final sales of domestic product) accelerated, rising 2.8 percent in the fourth quarter, compared with 2.5 percent in the third quarter. Also contributing to the economic slowdown: a larger decrease in federal government spending, a downturn in housing investment, a slowdown in state and local government spending, and a slowdown in business investment.

Offsetting the contributions to the slowdown:
• Net exports accelerated, reflecting a pickup in exports and a slowdown in imports.
• Consumer spending accelerated, reflecting a pickup in spending on household services, notably household utilities as well as food services and accommodations.

Gross domestic purchases prices
Prices of goods and services purchased by U.S. residents rose 1.2 percent in the fourth quarter after rising 1.8 percent in the third quarter. Both energy prices and food prices turned down in the fourth quarter. Excluding these items, prices rose 1.7 percent after rising 1.5 percent.

Government shutdown
The full effects of the federal government shutdown in October could not be quantified. However, BEA was able to estimate the effects of the reduction in hours worked by federal employees, which reduced GDP growth by 0.3 percentage point. More informationgdp2

Annual GDP highlights
The slowdown in real GDP growth in 2013 reflected the following:
• Business investment slowed, reflecting slower growth in both structures (mainly power and communication) and equipment (mainly transportation).
• Federal government spending declined more in 2013 than in 2012.
• Consumer spending on services slowed, rising 1.2 percent after rising 1.6 percent.

In contrast, state and local government spending declined less in 2013 than in 2012, and consumer spending on goods accelerated.

For more on GDP, read the full report.