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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.

State Personal Income: Third Quarter 2016

State personal income growth decelerated to 1.1 percent on average in the third quarter of 2016 from 1.2 percent in the second quarter. Personal income grew in every state in the second-quarter with growth rates ranging from 0.4 percent in Oklahoma to 1.4 percent in South Dakota.

personal-income-map-dec-20

personal-income-chart-dec-20

For more information, read the full report.

New Statistics on the Activities of U.S. Multinational Enterprises are Now Available

Detailed statistics on the worldwide activities of U.S. multinational enterprises in 2014, including the finances and operations of U.S. parent companies and their foreign affiliates, are now available from the U.S. Bureau of Economic Analysis.

Available on BEA’s website, the statistics offer information about U.S. multinational enterprises (MNEs) including: balance sheet and income statement details; employment and employee compensation; sales; value added (a measure of the enterprise’s contribution to gross domestic product in the United States and in the other countries where it operates); capital expenditures; trade in goods; and spending on research and development.

The statistics can be used to measure the scale of the global business activity of U.S. MNEs, as well as their impact on the U.S. economy and on other countries’ economies.

Here are a few highlights from the 2014 data:

  • The activities of U.S. MNEs in 2014 remained concentrated in the United States; U.S. parents accounted for more than two-thirds and foreign affiliates for less than one-third of the worldwide value added, capital expenditures, and R&D expenditures of U.S. MNEs.
  • MNE employment was slightly less concentrated in the United States, with U.S. parents accounting for 65.8 percent and foreign affiliates accounting for 34.2 percent.
  • Most foreign affiliates were located in high-income countries in 2014. Affiliates in these countries accounted for 75.9 percent of foreign affiliate value added.
  • The operations of U.S. MNEs are dominated by very large (greater than 10,000 employees) companies. These companies accounted for 68.4 percent of MNE value added and 75.9 percent of MNE employment. In terms of counts, however, almost half of U.S. MNEs were small (maximum of 500 employees) companies.

An article in the December edition of the Survey of Current Business, BEA’s online journal, will feature the statistics.

The preliminary data are based on the 2014 Benchmark Survey of U.S. Direct Investment Abroad.  Benchmark surveys, which are conducted every five years (in lieu of the annual survey), are BEA’s most comprehensive surveys – in terms of both the coverage of companies and the amount of information that is collected. Consequently, the increase in most U.S. MNE activities from 2013 to 2014 largely reflects the improved coverage of these activities in the 2014 Benchmark Survey of U.S. Direct Investment Abroad.

The newly released statistics also include revised statistics on the activities of U.S. MNEs in 2013.

BEA also produces statistics that cover U.S. affiliates of foreign multinational enterprises. These statistics were released earlier this year in August.


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