Posts Tagged 'gross domestic product'



GDP Growth Accelerates in Third Quarter

Real gross domestic product (GDP) increased 4.1 percent in the third quarter of 2013, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was 0.5 percentage point more than the “second” estimate released earlier this month. In the second quarter, the growth rate was 2.5 percent.gdp1

GDP highlights
Inventory investment accelerated in the third quarter, accounting for about 40 percent of real GDP growth, compared with about 15 percent in the second quarter.

GDP less inventory investment (real final sales of domestic product) rose 2.5 percent in the third quarter, compared with 2.1 percent in the second
quarter.

Also contributing to the acceleration in growth, imports rose less in the third quarter than in the second quarter. Spending by state and local governments and by consumers accelerated.

Revisions
The upward revision to third-quarter GDP growth was largely accounted for by a revision to consumer spending—to 2.0 percent growth (third estimate), up from 1.4 percent (second estimate). That revision mainly reflected an upward revision to services, especially to health care and to recreation services. Consumer spending on nondurable goods was also revised up, mainly gasoline and other energy goods.

In addition, business investment was revised up, mainly in intellectual property products, specifically software.

Partially offsetting the upward revisions, residential investment was revised down.

Corporate profitsgdp2
The revised estimate of third-quarter corporate profits was little changed from the previous estimate. Profits increased 1.9 percent after increasing 3.3 percent in the second quarter.
• Profits of nonfinancial corporations rose 1.0 percent after rising 3.2 percent.
• Profits of financial corporations rose 2.1 percent after rising 5.7 percent.
• Profits from the “rest of the world” rose 4.1 percent after rising 1.2 percent.

Over the last four quarters, profits rose 5.7 percent.

For more on GDP, read the full report.

GDP Growth Picks up in Third Quarter

Real gross domestic product (GDP) increased 3.6 percent in the third quarter of 2013, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.8 percentage point more than the “advance” estimate released the previous month. In the second quarter, the growth rate was 2.5 percent.gdp_1205_1

GDP highlights
In the third quarter, inventory investment picked up notably, accounting for nearly half of real GDP growth. In the second quarter, inventory investment accounted for less than one-fifth of growth. GDP less inventory investment (real final sales of domestic product) rose only 1.9 percent in the third quarter, compared with 2.1 percent in the second quarter.

Also contributing to the stepup in real GDP growth, imports rose less in the third quarter than in the second quarter. State and local government spending picked up.

Offsetting these movements, exports, consumer spending, and business investment each grew at a slower rate in the third quarter than in the second quarter.

Revisions
The upward revision to third quarter GDP growth was more than accounted for by an upward revision to inventory investment, which reflected newly available Census Bureau data. Strong upward revisions to wholesale trade, retail trade, and mining inventory investment accounted for most of the revision.

Business investment was also revised up, mainly reflecting an upward revision to equipment investment.

Corporate profitsgdp_1205_2
Growth in BEA’s featured measure of corporate profits slowed in the third quarter, increasing 1.8 percent after increasing 3.3 percent in the second quarter.

• Profits of nonfinancial corporations rose 1.1 percent after rising 3.2 percent.
•Profits of financial corporations rose 1.9 percent after rising 5.7 percent.
• Profits from the “rest of the world” rose 4.1 percent after rising 1.2 percent.

Over the last 4 quarters, corporate profits rose 5.6 percent.

For more on GDP, read the full report.

GDP Growth Picks Up in Third Quarter

Real gross domestic product (GDP) increased 2.8 percent in the third quarter of 2013, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, the growth rate was 2.5 percent.

GDP growthgdp_11_7_1
The third-quarter growth reflected the following:
• Imports decelerated. Nonauto consumer goods turned down, and autos and auto parts decelerated. In contrast, nonpetroleum industrial supplies turned up.
• Inventory investment picked up. Wholesale trade, especially durable goods, more than accounted for the pick up. Manufacturing inventory investment also accelerated.
• State and local government spending accelerated. Investment in structures turned up.

In contrast, the following decelerated in the third quarter: exports (mainly nonauto consumer goods and nonauto capital goods), business investment (mainly information processing equipment), and consumer spending (mainly housing and utilities as well as health care).

Personal income and personal saving
Real disposable personal income (DPI), which adjusts for taxes and inflation, increased 2.5 percent in the third quarter after increasing 3.5 percent in the second quarter. The slowdown in real DPI reflected an upturn in consumer prices that was partly offset by an acceleration in current-dollar DPI.

Personal saving as a percent of DPI was 4.7 percent in the third quarter, compared with 4.5 percent in the second quarter.

Pricesgdp_11_7_2
Prices of goods and services purchased by U.S. residents accelerated in the third quarter, increasing 1.8 percent after increasing 0.2 percent in the second quarter.

Energy goods and services prices turned up, accounting for much of the third-quarter pickup in gross domestic purchases prices. In particular, consumer spending on gasoline and other energy goods turned up.

Food prices accelerated modestly.

Prices less food and energy increased 1.5 percent after increasing 0.8 percent.

For more on GDP, read the full report.