Posts Tagged 'gross domestic product'



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.

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.