- 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.
Posts Tagged 'gross domestic product'
Tags: BEA, BEA News, GDP, gross domestic product, real gross domestic product
Tags: BEA, BEA News, Bureau of Economic Analyis, GDP, gross domestic product
Real gross domestic product (GDP) increased 3.7 percent in the second quarter of 2015, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was revised up 1.4 percentage points from the “advance” estimate released in July. In the first quarter, real GDP increased 0.6 percent.
Exports, state and local government spending, business investment, residential investment, and inventory investment also contributed to the increase in real GDP.
These contributions to the increase in real GDP were partly offset by a rise in imports, mainly in autos and auto parts. (Imports are subtraction in the calculation of GDP.)
The upward revision to second-quarter GDP growth reflected upward revisions to business investment (all three major categories), inventory investment, state and local government spending, and consumer spending.
For more information, see the technical note.
- Profits of domestic nonfinancial corporations increased 1.3 percent after decreasing 5.3 percent.
- Profits of domestic financial corporations increased 9.4 percent after decreasing 6.1 percent.
- Profits from the rest of the world decreased 0.7 percent after decreasing 6.9 percent.
Over the last 4 quarters, corporate profits decreased 0.5 percent.
For more information, read the full report.
Tags: BEA, BEA News, GDP, GDP by industry, gross domestic product
Transportation and warehousing is an industry that is important to everyone, whether you’re an individual flying home to visit family or a business expecting a shipment of raw materials. In the first quarter of 2015, transportation and warehousing subtracted 0.56 percentage point from real Gross Domestic Product, and was the largest contributor to the 0.2 percent decrease in GDP.
That sounds straightforward enough, but what exactly does that mean?
Contribution to growth—or in this case, a contribution to a decline–isn’t solely a matter of looking at the percent change in real value added by an industry. Instead, the contribution is based on both the quarter-to-quarter change and the size of the industry in the economy.
For instance, real (inflation-adjusted) value added for transportation and warehousing fell 17.3 percent, a smaller percentage point decrease than that of the utilities industry, which fell 18.4 percent. However, transportation and warehousing is a larger industry than utilities. Because transportation and warehousing is larger, that 17.3 percent decrease translated to a $20.7 billion decrease, while the smaller utilities industry’s 18.4 percent decrease translated to a $14.4 billion decrease. This explains why the transportation and warehousing sector contributed 0.56 percentage point to the overall decrease in GDP, while the utilities sector contributed 0.34 percentage point.
This distinction is important because looking at the industries that subtract the most from GDP when GDP falls (or, conversely, contribute the most to GDP when GDP increases) typically points us toward those industries where notable things are happening.
In the case of transportation and warehousing, the notable thing that happened in the first quarter was a sharp drop in real gross output – a measure of an industry’s sales or receipts.
If you’re one of the millions of travelers whose flight was canceled during the unusually harsh winter of 2015, this probably isn’t surprising to you. Heavier than normal snow in the Northeast directly impacted air transportation, a component of transportation and warehousing. Of course, the harsh winter began in December, and as you can see here, transportation and warehousing declined in the fourth quarter of 2014 as well even though overall GDP was increasing 2.2 percent. But when you look at relatively milder winters, such as the winter in the first quarter of 2013, you see that transportation and warehousing increased.
Indeed, the weather in the first quarter of 2015 impacted many portions of the transportation and warehousing industry, which also includes rail transportation, water transportation, truck transportation, transit and ground passenger transportation, pipeline transportation, various support activities, couriers and messengers, and warehousing and storage.
Truck transportation, the largest component of transportation and warehousing, was likely affected not only by the harsh weather but also by work slowdowns at several ports along the West Coast. Slowdowns at the ports translated into less (or no) cargo loaded onto trucks, leaving trucks underutilized (or idle) when they would otherwise be delivering goods. In addition to the direct impact on the output of the transportation and warehousing industry, trucking is a critical input to the production processes of many other industries. For example, the wholesale and retail trade industries depend heavily on truck transportation, and both showed a notable decline in their purchases of transportation services in the first quarter.
You may have noticed that subtracting 0.56 percentage point from GDP means that transportation and warehousing accounted for more than the actual 0.2% decrease in real GDP. This is because other industries grew in the first quarter. BEA’s quarterly GDP-by-industry statistics help us to better see the inner workings of the economy and provide a comprehensive picture of U.S. industrial performance.