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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