Real gross domestic product (GDP) increased 4.2 percent in the second quarter of 2014, according to the “second” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 2.1 percent. The second-quarter growth rate was revised up 0.2 percentage point from the “advance” estimate released in July.
- Exports, mainly goods exports, increased after decreasing in the first quarter.
- Nonfarm inventory investment by motor vehicle dealers turned up.
- Consumer spending, notably motor vehicles and parts, increased more than in the first quarter.
In addition, business investment picked up, and state and local government spending increased after decreasing in the first quarter.
In contrast to these contributions, imports (a subtraction in the calculation of GDP) were higher in the second quarter than in the first quarter.
The 0.2 percentage point revision to second-quarter GDP growth primarily reflected an upward revision to business investment and a downward revision to imports. These revisions were partly offset by a downward revision to inventory investment.
See the Technical Note for more information.
BEA’s featured measure of corporate profits increased 8.0 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 10.6 percent after falling 7.4 percent in the first quarter.
- Profits of financial corporations rose 7.3 percent after falling 17.1 percent.
- Profits from the rest of the world rose 1.2 percent after falling 6.1 percent.
Over the last 12 months, corporate profits fell 0.3 percent.