The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FRIDAY, August 27, 2010 GDP GROWTH SLOWS IN SECOND QUARTER “Second” Estimate of GDP Real gross domestic product (GDP) increased 1.6 percent in the second quarter of 2010 after increasing 3.7 percent in the first quarter, according to the Bureau of Economic Analysis. The second-quarter growth rate was revised down 0.8 percentage point from the “advance” estimate, in part reflecting new data on imports for June. Real gross domestic purchases—purchases of goods and services produced domestically and abroad—rose 4.9 percent in the second quarter after rising 3.9 percent in the first quarter. GDP highlights The slower GDP growth primarily reflected a surge in imports compared with the previous quarter and a slowdown in inventory investment. These contributions to the slowdown in GDP growth were partly offset by an upturn in residential investment, an acceleration in business investment, an upturn in state and local government spending, and a pick up in federal government spending. Quarter-to-Quarter Growth in Real GDP 6 4 Percent 2 0 -2 -4 -6 -8 III IV 2006 I II III 2007 IV I II III 2008 IV I II III 2009 IV I II 2010 Real GDP growth is measured at seasonally adjusted annual rates. Revisions Downward revisions to net exports and to inventory investment were partly offset by an upward revision to consumer spending for services. Corporate Profits Second-quarter corporate profits rose 4.6 percent at a quarterly rate. Nonfinancial corporate profits increased 8.1 percent, and financial corporate profits decreased marginally. Profits from the rest of the world increased 1.4 percent. Quarter-to-Quarter Growth in Corporate Profits 15 10 5 0 Percent -5 -10 -15 -20 -25 -30 III IV I 2006 II 2007 III IV I II III 2008 IV I II III 2009 IV I II 2010 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 “third” estimate of GDP for the second quarter of 2010 will be released on September 30, 2010. 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
@FedFRASER