Real gross domestic product (GDP) increased 2.0 percent in the third quarter of 2015, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was revised down 0.1 percentage point from the “second” estimate released in November. In the second quarter, real GDP increased 3.9 percent.
The third-quarter increase in real GDP mainly reflected a rise in consumer spending. Spending on nondurable and durable goods increased. Spending on services also increased, notably on health care.
The following also contributed to the increase in GDP: Business investment, state and local government spending, residential investment, and exports.
The contributions to real GDP growth were partly offset by a decline in inventory investment, notably in manufacturing and in wholesale trade. Also, imports, a subtraction in the calculation of GDP, increased.
Real final sales of domestic product—GDP less inventory investment—increased 2.7 percent in the third quarter, compared with a 3.9 percent increase in the second quarter.
The slight revision to real GDP growth mainly reflected a downward revision to private inventory investment, notably to wholesale trade and to manufacturing. For more information, see the technical note.
Corporate profits decreased 1.6 percent at a quarterly rate in the third quarter after increasing 3.5 percent in the second quarter.
- Profits of domestic nonfinancial corporations decreased 0.9 percent after increasing 1.9 percent.
- Profits of domestic financial corporations increased 0.5 percent after increasing 9.6 percent.
- Profits from the rest of the world decreased 5.7 percent after increasing 2.9 percent.
Over the last 4 quarters, corporate profits decreased 5.1 percent.
For more information, read the full report.