Posts Tagged 'gross domestic product'



GDP Turns Up in Second Quarter

Real gross domestic product (GDP) increased 4.0 percent in the second quarter of 2014, according to the “advance” estimate released today by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 2.1 percent (revised).

Second-quarter highlightsGDP_7_30_14
The upturn in real GDP growth was mainly driven by upturns in exports and in private nonfarm inventory investment as well as an acceleration in consumer spending, notably for durable goods.

In addition, state and local government spending and residential investment turned up, and business investment accelerated.

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

Annual revision
BEA also released its 2014 annual revision of the national income and products accounts, which updated most components from the first quarter of 2011 to the first quarter of 2014 based on newly available revised source data. In addition, GDP and selected components were revised back to the first quarter of 1999 to incorporate revisions from the international transactions accounts. See the Technical Note.

For 2011–2013, real GDP increased at average annual rate of 2.0 percent, compared with 2.2 percent in the previously published estimates. For the first quarter of 2011 through the first quarter of 2014, the revisions did not change the direction of GDP growth for any quarter.

PricesGDP_Prices_7_30_14
Prices of goods and services purchased by U.S. residents—that is, prices of gross domestic purchases—increased 1.9 percent in the second quarter after increasing 1.4 percent in the first quarter.

Food prices increased 4.2 percent after increasing 1.3 percent, and energy prices increased 5.1 percent after increasing 2.8 percent.

Excluding food and energy, gross domestic purchases prices increased 1.7 percent in the second
quarter, compared with 1.3 percent in the first quarter.

Read the full report.

GDP Declines in First Quarter

GDP_5_29_14 Real gross domestic product (GDP) decreased 1.0 percent in the first quarter of 2014, according to the “second” estimate released today by the Bureau of Economic Analysis. In the fourth quarter of 2013, real GDP increased 2.6 percent.

First-quarter GDP highlights
The decline in real GDP was more than accounted for by a significant decline in inventory investment, notably by motor vehicle dealerships. In fact, GDP less inventory investment (real final sales of domestic product) rose 0.6 percent in the first quarter.

Declines in exports, in business investment, in state and local government spending, and in housing investment also contributed to the decrease in first-quarter real GDP.

In contrast, consumer spending increased, notably in health care and in home utilities.

Revisions
 First-quarter real GDP growth was revised down 1.1 percentage points from the advance estimate released in April, based on newly available source data.

  • Inventory investment was revised down, mainly in retail trade, in manufacturing, and in mining, utilities, and construction.
  • Imports were revised up, notably in foods, feeds, and beverages and in petroleum and related products. Partly offsetting this revision, exports were also revised up, notably in nonautomotive capital goods and in automotive vehicles, engines, and parts.

Corporate profitsProfits_5_29_14
BEA’s featured measure of corporate profits declined 9.8 percent in the first quarter, after increasing  2.2 percent in the previous quarter. The  decline was the largest since the fourth quarter of  2008.

  •  Profits of nonfinancial corporations fell 8.1  percent after rising 1.5 percent.
  • Profits of financial corporations fell 15.0 percent  after rising 1.3 percent.
  • Profits from the rest of the world fell 9.1 percent after rising 5.5 percent.

Over the last 4 quarters, corporate profits fell 3.0 percent.

Read the full report.

GDP Growth Decelerates in Fourth Quarter

Real gross domestic product (GDP) increased 2.4 percent in the fourth quarter of 2013, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.8 percentage point less than the “advance” estimate released in January. In the third quarter, the growth rate was 4.1 percent.

gdp1Fourth-quarter GDP highlights
The slowdown in real GDP growth reflected a slowdown in inventory investment. GDP less inventory investment (final sales of domestic product) rose 2.3 percent, almost as much as the 2.5 percent growth in the third quarter.

Also contributing to the slowdown: a larger decrease in federal government spending and downturns in housing investment and in state and local government spending.

In contrast, exports, consumer spending, and business investment each accelerated.

Fourth-quarter revisions
The revision to real GDP growth reflected the incorporation of newly available, higher quality source data. The following were revised down:

• Consumer spending on both goods and services; the revisions were widespread.
• Inventory investment, led by wholesale trade industries.
• Exports, mainly nonautomotive capital goods and consumer goods.
• State and local government spending, mainly investment in structures.

In contrast, business investment was revised up, mainly in equipment and in software.

gdp2Annual GDP highlights
For the full year 2013, real GDP increased 1.9 percent, the same as the previous estimate. In 2012, the growth rate was 2.8 percent.

• Business investment slowed, reflecting slower growth in structures (mainly power and communication) and in equipment (mainly transportation).
• Federal government spending declined more in 2013 than in 2012.
• Consumer spending on services slowed.

In contrast, imports slowed, state and local government spending declined less, and consumer spending on goods accelerated.

For more on GDP, read the full report.