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Wednesday, March 28, 2018 Contact: Jeannine Aversa, (301) 278‐9003 GDP INCREASES IN FOURTH QUARTER “Third” estimate of GDP Real gross domestic product (GDP) increased 2.9 percent in the fourth quarter of 2017, according to the “third” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.2 percent. Quarter‐to‐Quarter Growth in Real GDP 6 4 Percent Fourth‐quarter GDP highlights The increase in real GDP reflected increases in consumer spending, business investment, exports, government spending, and housing investment. 2 These contributions were partly offset by a decline in private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased. 0 ‐2 Q1 Q2 Q3 Q4 Q1 Q2 2014 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 2017 Real GDP growth is measured at seasonally adjusted annual rates. Revisions The upward revision to real GDP growth was accounted for by revisions to consumer spending on services and to private inventory investment. 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 2.5 percent in the fourth quarter after increasing 1.7 percent in the third quarter. Excluding food and energy, prices rose 2.0 percent after increasing 1.6 percent. 1 0 ‐1 ‐2 Q1 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 2017 Price growth measured at seasonally adjusted annual rates. Quarter‐to‐Quarter Growth in Corporate Profits Profits of nonfinancial corporations increased 1.5 percent in the fourth quarter, profits of financial corporations decreased 3.0 percent, and profits from the rest of the world decreased 1.3 percent. 10 8 6 4 Percent Corporate profits Profits decreased 0.1 percent at a quarterly rate in the fourth quarter after increasing 4.3 percent in the third quarter. 2 0 ‐2 ‐4 ‐6 ‐8 Q1 Q2 Q3 2014 Q4 Q1 Q2 Q3 2015 Q4 Q1 Q2 Q3 2016 Q4 Q1 Q2 Q3 2017 Q4 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 2018 will be released on April 27, 2018.