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Gross Domestic Product Second Quarter of 2016 (Second Estimate)

Real gross domestic product (GDP) increased 1.1 percent in the second quarter Q2Q Part 2 Augt 26of 2016, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.1 percentage point less than the “advance” estimate released in July. In the first quarter, real GDP rose 0.8 percent.

Second‐quarter GDP highlights
The increase in real GDP was more than accounted for by an increase in consumer spending. Spending on nondurable goods increased, notably on food and beverage grocery items. Spending on durable goods increased, notably on recreational goods and vehicles. And spending on services increased, notably on housing and utilities and on health care.

The increase in consumer spending was partly offset by a decline in inventory investment. In fact, GDP less inventory investment (real final sales of domestic product) increased 2.4 percent in the second quarter. Also partly offsetting contributions to real GDP growth, housing investment, state and local government spending, and business investment declined.

Revisions
The downward revision to the second estimate of GDP growth mainly reflected downward revisions to state and local government spending and to inventory investment as well as an upward revision to imports, which is a subtraction in the calculation of GDP. For more information, see the technical note.

Corporate profits
Corporate profits decreased 1.2 percent at a quarterly rate in the secondQ2Q Pt 2 Corp quarter of 2016 after increasing 3.4 percent in the first quarter.

• Profits of domestic nonfinancial corporations decreased 4.7 percent after increasing 7.4 percent.

• Profits of domestic financial corporations increased 1.6 percent after increasing 1.9 percent.

• Profits from the rest of the world increased 7.3 percent after decreasing 6.8 percent.

Over the last 4 quarters, corporate profits decreased 4.9 percent.

For more information, read the full report.

Statistics on U.S. Affiliates of Foreign Multinational Enterprises Now Available for 2014; Data for 2013 Updated

New statistics detailing the activities of U.S. affiliates of foreign multinational enterprises (MNEs) are now available from the U.S. Bureau of Economic Analysis. The statistics, which include the first information for 2014 and updated data for 2013, offer details on the finances and operations of U.S. affiliates of foreign MNEs, including their employment and compensation, sales, value added, capital expenditures, trade in goods, and expenditures for research and development.

With the release of statistics for 2014, BEA is reinstating several state-level data items that were available prior to 2008. The newly released statistics now include state-level data on the gross book value of property, plant, and equipment; commercial property; and manufacturing employment. These statistics complement the other state-level statistics BEA produces on the activities of U.S. affiliates: U.S. affiliate employment and number of affiliates by state.

Some highlights from the statistics on majority-owned U.S. affiliates (those with foreign ownership of more than 50 percent):

  • The current-dollar value added of majority-owned U.S. affiliates, a measure of their direct contribution to U.S. gross domestic product, totaled $869.1 billion in 2014. That’s an increase of $26.9 billion, or 3.2 percent, from 2013. The affiliates accounted for 6.4 percent of total U.S. private industry value added in 2014 compared with 6.5 percent in 2013.
  • Affiliates with ultimate beneficial owners in seven countries— the United Kingdom, Japan, Canada, Germany, Switzerland, France, and the Netherlands —accounted for nearly three-fourths of the value added by all majority-owned U.S. affiliates in 2014.
  • Majority-owned U.S. affiliates employed 6.4 million workers, up 3.1 percent in 2014, following a 5.0 percent increase in 2013. These affiliates accounted for 5.2 percent of all U.S. private industry employment, the same share as in 2013.
  • The states with the largest shares of total private industry employment accounted for by these affiliates in 2014 were South Carolina (8.2 percent), New Hampshire (7.6 percent), and Delaware (7.6 percent).
  • Exports of goods by affiliates rose in 2014 by $29.5 billion, or 7.5 percent, and imports rose by $19.2 billion, or 2.7 percent.
  • Research and development performed by affiliates rose by $2.8 billion, or 5.2 percent, in 2014.

For more information read the full article, which will be available in the August Survey of Current Business.

American Samoa economy grows 1.1 percent in 2015

Real GDP Percent change from preceding year

Estimates of gross domestic product for American Samoa show that real GDP–GDP adjusted to remove price changes–increased 1.1 percent in 2015 after increasing 1.3 percent in 2014. For comparison, real GDP for the United States (excluding the territories) increased 2.6 percent in 2015 after increasing 2.4 percent in 2014.

The growth in the American Samoa economy reflected increases in exports of goods and government spending. These increases were partly offset by an increase in imports of goods, which is a subtraction item in the calculation of GDP. Exports of goods grew for a second consecutive year. This growth reflected increased activity of the tuna canning industry, which continued to increase its output after opening a multimillion-dollar canning plant in early 2015.

Government spending also increased, reflecting growth in spending by the territorial government. Major territorial government projects in 2015 included the rebuilding of the Satala Power Plant and the telecommunication authority’s work to improve broadband capacity and coverage in American Samoa.

The estimates of GDP for American Samoa for 2015, along with estimates of GDP by industry and compensation by industry for 2014 —  all released today —  were developed under the Statistical Improvement Program funded by the Office of Insular Affairs (OIA) of the U.S. Department of the Interior.

Moving forward, an agreement between OIA and BEA will extend and improve the estimates of GDP for American Samoa. The information provided by the American Samoa Government will continue to be critical to the successful production of these estimates.

BEA currently plans to release GDP estimates for 2016 in the summer of 2017. GDP by industry and compensation by industry estimates for 2015 will also be released at the same time.


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