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THURSDAY, March 27, 2014 GDP GROWTH SLOWS IN FOURTH QUARTER Growth Revised Up Real gross domestic product (GDP) increased 2.6 percent in the fourth quarter of 2013, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was 0.2 percentage point more than the “second” estimate released in February. In the third quarter, the growth rate was 4.1 percent. Quarter-to-Quarter Growth in Real GDP 6 4 Percent Fourth-quarter GDP highlights Consumer spending rose 3.3 percent, the highest since the fourth quarter of 2010, reflecting spending on housing and utilities, health care, and food services and accommodations. In the third quarter, consumer spending rose 2.0 percent. Exports also accelerated in the fourth quarter. 2 0 These accelerations were more than offset, however, by a downturn in inventory investment, a larger decrease in federal government spending, and a downturn in housing investment. -2 I II III 2010 IV I II III 2011 IV I II III 2012 IV I II III 2013 IV Real GDP growth is measured at seasonally adjusted annual rates GDP revisions The upward revision to real GDP growth reflected the incorporation of newly available source data. Consumer spending was revised up (mainly services), while business investment (mainly intellectual property products) and inventory investment were revised down. Personal income and personal saving Real disposable personal income (DPI)—personal income adjusted for inflation and taxes—increased 0.8 percent in the fourth quarter, compared with 3.0 percent in the third quarter. Personal saving as a percent of DPI was 4.3 percent in the fourth quarter, compared with 4.9 percent in the third quarter. Fourth-quarter corporate profits Profits grew 2.2 percent at a quarterly rate, compared with 1.9 percent in the third quarter. Quarter-to-Quarter Growth in Corporate Profits 20 15 Annual corporate profits In 2013, corporate profits rose 4.6 percent at an annual rate, compared with 7.0 percent in 2012. Profits of nonfinancial corporations rose 5.2 percent, profits of financial corporations rose 8.2 percent, and profits from the rest of the world fell 0.7 percent. 10 Percent Profits of nonfinancial corporations rose 1.5 percent, profits of financial corporations rose 1.3 percent, and profits from the rest of the world rose 5.5 percent. 5 0 -5 -10 I II III 2010 IV I II III IV 2011 I II III 2012 IV I II III IV 2013 Corporate profits growth is measured as the percent change from the previous quarter. BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and economic data for states, local areas, and industries—are available on the BEA Web site: www.bea.gov. E-mail alerts are also available. NOTE: The “advance” estimate of GDP for the first quarter of 2014 will be released on April 30, 2014. Contact: Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce
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