The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THURSDAY August 28, 2008 GDP PICKS UP IN THE SECOND QUARTER Corporate Profits Decline The economy grew at an annual rate of 3.3 percent in the second quarter, compared with 0.9 percent in the first quarter, according to the “preliminary” estimates released by the Bureau of Economic Analysis. The secondquarter growth rate was revised up 1.4 percentage points from the “advance” estimate of 1.9 percent. Gross Domestic Product (GDP) The pickup in GDP growth reflected accelerations in net exports and consumer spending and a smaller decrease in housing investment. In contrast, inventory investment declined more than in the first quarter. The larger-than-average revision to second-quarter growth stemmed from upward revisions to net exports and inventory investment, which reflected newly available Census Bureau trade-in-goods and inventories data for June. Quarter-to-Quarter Growth in Real GDP 6 Percent 4 2 0 -2 III IV 2004 I II III 2005 IV I II III 2006 IV I II III 2007 IV I II 2008 Real GDP growth is measured at seasonally adjusted annual rates. Corporate Profits Second-quarter profits fell 2.4 percent, the fourth straight quarterly decline. Profits were 7.0 percent below yearago levels. 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: Additional information that becomes available in the coming weeks will be incorporated in a “final” estimate of second-quarter GDP on September 26, 2008. A revised estimate of corporate profits will also be released. Contact: Ralph Stewart or Thomas Dail (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce