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Thursday, March 30, 2017
Contact: Jeannine Aversa, (301) 278‐9003

GDP INCREASES IN FOURTH QUARTER
“Third” estimate of GDP
Real gross domestic product (GDP) increased 2.1 percent in the fourth quarter of 2016, according to the
“third” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased
3.5 percent.
Quarter‐to‐Quarter Growth in Real GDP

6

4
Percent

Fourth‐quarter GDP highlights
The increase in real GDP reflected an increase in
consumer spending, private inventory investment,
residential investment, business investment, and
state and local government spending. These
contributions were partly offset by declines in
exports and federal government spending. Imports,
which are a subtraction in the calculation of GDP,
increased.

2

0

‐2
Q1

Q2

Q3

Q4

Q1

2013

Q2

Q3

Q4

Q1

2014

Q2

Q3

Q4

Q1

Q2

2015

Q3

Q4

2016

Real GDP growth is measured at seasonally adjusted annual rates.

Revisions
The upward revision to real GDP growth was more
than accounted for by an upward revision to
consumer spending, largely in services. This upward
revision was partly offset by downward revisions to
business investment and to exports.

Quarter‐to‐Quarter Percent Change in Gross
Domestic Purchases Prices
3

Percent

2

Prices
Prices of goods and services purchased by U.S.
residents increased 2.0 percent in the fourth quarter
after increasing 1.5 percent in the third quarter.
Excluding energy and food, prices rose 1.6 percent
after increasing 1.7 percent.

1

0

‐1

‐2
Q1

Q2

Q3

Q4

Q1

2013

Q2

Q3

Q4

Q1

2014

Q2

Q3

Q4

Q1

Q2

2015

Q3

Q4

2016

Price growth measured at seasonally adjusted annual rates.

Quarter‐to‐Quarter Growth in Corporate Profits

Profits of nonfinancial corporations decreased 4.9
percent in the fourth quarter, profits of financial
corporations increased 5.4 percent, and profits from
the rest of the world increased 11.0 percent.

10
8
6
4

Percent

Corporate profits
Profits increased 0.5 percent at a quarterly rate in
the fourth quarter after increasing 5.8 percent in the
third quarter.

2
0
‐2
‐4
‐6
‐8

Q1

Q2 Q3
2013

Q4

Q1

Q2 Q3
2014

Q4

Q1

Q2 Q3
2015

Q4

Q1

Q2 Q3
2016

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
regional economic data—are available at www.bea.gov. E-mail alerts are also available. The “advance” estimate of GDP for the
first quarter of 2017 will be released on April 28, 2017.

Q4