Archive for the 'Real GDP' Category

GDP Increases in Third Quarter

Real gross domestic product (GDP) increased 3.5 percent in the third quarter of 2016,
according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was 0.3 percentage point higher than the “second” estimate released in November. In the second quarter, real GDP rose 1.4 percent.

Third‐quarter GDP highlights q2q-growth-in-real-gdp-dec-22
The increase in real GDP partly reflected an increase in consumer spending on services, notably on housing and utilities. Consumer spending on durable goods also increased, notably on motor vehicles and parts. However, spending on nondurable goods declined.

Exports of goods increased, notably in foods, feeds, and beverages and in consumer durable goods. Exports of services increased, mainly in travel. In addition, private inventory investment and federal government spending increased.

Offsetting these contributions to growth, investment in equipment and in residential housing declined.

GDP update
The upward revision to third‐quarter GDP growth reflected upward revisions to business investment, to consumer spending, and to state and local government spending.

Corporate profits

Profits increased 5.8 percent at a quarterly rate in the third quarter after decreasing 0.6 percent in the second quarter.  q2q-corporate-profits-dec-22

Profits of domestic nonfinancial corporations increased 5.7 percent after decreasing 4.6 percent.
Profits of domestic financial corporations rose 11.3 percent after rising 1.3 percent.
Profits from the rest of the world were nearly unchanged after increasing 10.3 percent. Over the last 4 quarters, corporate profits increased 2.1 percent.

For more information, read the full report.

Gross Domestic Product for the U.S. Virgin Islands Increases

After declining for four consecutive years, the Virgin Islands’ economy grew in 2015.  Real GDP — adjusted to remove price changes—increased 0.2 percent in 2015, after decreasing 1.0 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.

percent-change-from-preceding-year-1214

The growth in the Virgin Islands’ economy reflected increases in exports of services and consumer spending . These increases were partly offset by a decrease in government spending.

The growth in exports of services, which consists primarily of spending by tourists, reflected increases in air arrivals and hotel revenues.

The growth in consumer spending was supported by an increase in compensation and by lower energy prices.

Government spending fell in 2015, as territorial government construction activity decreased. Territorial government spending on capital assets had been elevated in previous years due in part to the development of a fiber optic network.

For more information, read the full report.

Economy of the Commonwealth of the Northern Mariana Islands Grows in 2015

The economy of the Commonwealth of the Northern Mariana Islands grew 3.5 percent in 2015, according to new data from the Bureau of Economic Analysis.

That 3.5 percent growth figure is for real GDP – that is, GDP adjusted for inflation. In 2014, the Northern Mariana Islands’ economy saw real GDP increase by 2.8 percent.  For comparison, real GDP for the United States (excluding the territories) increased 2.6 percent in 2015, after increasing 2.4 percent in 2014.

cnmi-chart-for-blog

The growth in the CNMI economy was boosted by private fixed investment, which increased over 60 percent in 2015. This growth reflected investments by the gaming industry, including a temporary training facility and an integrated casino resort under construction in Garapan.

Territorial government spending increased, reflecting recovery operations and reconstruction following Typhoon Soudelor. The typhoon struck the CNMI in early August 2015, damaging the local power plant and the island’s power distribution systems.

Exports of services, which consists primarily of spending by tourists, grew for the fourth year in a row. The increase reflected growth in visitor arrivals from Korea and China.

Increases to real GDP were partly offset by an increase in imports of goods and services, which is a subtraction item in the calculation of GDP.

GDP estimates for the CNMI were developed under the Statistical Improvement Program funded by the Office of Insular Affairs of the U.S. Department of the Interior. Revised estimates of GDP for 2013 and 2014, as well as revised estimates of GDP by industry and compensation by industry for 2013, are presented available. For more information, read the full report.


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