Posts Tagged 'gross domestic product'



GDP Increases in Third Quarter: “Third” Estimate of GDP

Real gross domestic product (GDP) increased 5.0 percent in the third quarter of 2014, according to the “third” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 4.6 percent.

GDP highlightsgdp1
The increase in GDP in the third quarter reflected the following:
• Consumer spending increased 3.2 percent, compared with 2.5 percent in the second quarter. Spending on both goods and services increased.
• Business investment rose, notably in transportation equipment and industrial equipment as well as in intellectual property products.
• Exports of goods increased; industrial supplies and materials was the largest contributor.
• Federal government spending increased, mainly national defense spending.

Revisions
The 1.1 percentage points upward revision to the GDP growth rate reflected the following:
• An upward revision to consumer spending, reflecting upward revisions to health care and recreation services.
• An upward reward revision to business investment, mainly to structures and intellectual property products.
• An upward revision to private inventory investment by wholesale trade industries, notably the nondurable
goods industry.

For more information, see the technical note.

Corporate profitsgdp2
Corporate profits increased 3.1 percent at a quarterly rate in the third quarter after increasing 8.4 percent in the second quarter.
• Profits of domestic nonfinancial corporations increased 2.5 percent after increasing 11.9 percent.
• Profits of domestic financial corporations increased 3.6 percent after increasing 8.0 percent.
• Rest of the world profits increased 4.2 percent after decreasing 0.9 percent.

Over the last 12 months, corporate profits rose 1.4 percent.

For more, see the full report.

Widespread Industry Growth Drives Upturn in GDP in Second Quarter

Widespread industry growth drove the U.S. economy’s second-quarter rebound, with 19 of the 22 industry groups tracked contributing 6.7 percentage points to real Gross Domestic Product. Finance, insurance, real estate, rental and leasing; manufacturing; and agriculture, forestry, fishing and hunting led the way.

Real GDP increased 4.6 percent in the second quarter, after decreasing 2.1 percent in the first quarter.

Real Value Added by Industry

Real value added —a measure of an industry’s contribution to GDP—for finance, insurance, real estate, rental, and leasing increased 2.7 percent in the second quarter, after decreasing 4.1 percent in the first

quarter. The upturn was primarily concentrated in the finance and insurance sector, which includes banking, brokerage and other types of financial services.  Real gross output for the finance and insurance sector – a measure of an industry’s sales or receipts adjusted for inflation – increased 2.7 percent in the second quarter, after increasing 2.3 percent.

Real value added for the manufacturing sector also turned up, increasing 6.8 percent, after decreasing 1.3 percent in the first quarter. Durable-goods manufacturing, which includes motor vehicle manufacturing and computer and electronic product manufacturing, led the overall upturn in manufacturing, increasing 8 percent in the second quarter, after decreasing 4.5 percent.  Similarly, real gross output for durable-goods manufacturing increased 7.3 percent, after decreasing 2.7 percent in the first quarter.

Real value added for the agriculture, forestry, fishing and hunting sector increased 14.2 percent.  The sector’s real gross output also rebounded in the second quarter, increasing 6.3 percent, after falling 19.9 percent.

Quarterly GDP by industry statistics, including value added, gross output, and intermediate inputs, can be accessed in BEA’s Interactive Data Application at www.bea.gov/itable/.

GDP Turns up in Second Quarter

Real gross domestic product (GDP) increased 4.6 percent in the second quarter of 2014, according to the “third” estimate released by the Bureau of Economic Analysis. The second-quarter growth rate was revised up 0.4 percentage point from the “second” estimate released in August. In the first quarter, real GDP decreased 2.1 percent.

Second-quarter highlights QUARTER TO Quarter growth
Exports of notably nondurable industrial supplies and materials and nonfarm inventory investment by motor vehicle dealers accounted for much of the upturn in real GDP.

In addition, business investment accelerated, mainly in information processing equipment, as did consumer spending, mainly on motor vehicles and parts.

In contrast to these contributions, imports (a subtraction in the calculation of GDP) were higher in the second quarter than in the first quarter.

Revisions
The 0.4 percentage point revision to second-quarter GDP growth primarily reflected the following:

  • Business investment was revised up, notably manufacturing structures.
  • Exports were revised up, notably travel services.

See the Technical Note for more information.

Corporate profits  corporate profits
Corporate profits increased 8.4 percent at a quarterly rate in the second quarter after decreasing 9.4 percent in the first quarter. The second quarter increase was the largest since the third quarter of 2010.

  • Profits of nonfinancial corporations rose 11.9 percent after falling 7.4 percent.
  • Profits of financial corporations rose 8.0 percent after falling 17.1 percent.
  • Profits from the rest of the world fell 0.9 percent after falling 6.1 percent.

Over the last 12 months, corporate profits rose 0.1 percent.

Read the full report.