Posts Tagged 'gross domestic product'



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.

GDP Growth Accelerates in Second Quarter

Real gross domestic product (GDP) increased 2.5 percent in the second quarter of 2013 after increasing 1.1 percent in the first quarter, according to the “third” estimate released by the Bureau of Economic Analysis (BEA). The second-quarter growth rate was the same as the “second” estimate released in August.gdp_1_0925

GDP growth highlights
The second-quarter acceleration reflected upturns in business investment, mainly in power and communications structures, and in goods exports, mainly in nonautomotive capital goods and in nonautomotive consumer goods.

In contrast, imports picked up, farm inventory investment slowed, and consumer spending decelerated, mainly nondurable goods and services.

Revisions
The second-quarter GDP growth rate reflected offsetting revisions. Inventory investment was revised down, notably retail trade outlets (mainly food and beverage stores) and “other” industries (mainly information industries). Exports of goods and services were also revised down. In contrast, state and local government spending was revised up, notably gross investment in structures.

Disposable personal income and personal saving
Real disposable personal income—personal income adjusted for taxes and inflation—rose 3.5 percent after falling 7.9 percent in the first quarter. (The steep first-quarter decline reflected one-time accelerated dividend and wage payments made in the fourth quarter of 2012.)

Personal saving as a percentage of disposable income was 4.5 percent in the second quarter, compared with 4.1 percent in the first quarter.

Corporate profitsgdp_2_0925
BEA’s featured measure of corporate profits rebounded in the second quarter, increasing 3.3 percent after decreasing 1.3 percent in the first quarter.

• Profits of nonfinancial corporations rose 3.2 percent after falling 0.3 percent.
• Profits of financial corporations increased 5.7 percent after decreasing 0.9 percent.
• Profits from the “rest of the world” rose 1.2 percent after falling 4.7 percent.

Compared with the second quarter a year ago, corporate profits rose 4.5 percent.

For more on GDP, read the full report.