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THURSDAY, September 27, 2012 GDP GROWTH SLOWS IN SECOND QUARTER Third Estimate of GDP Real gross domestic product (GDP) rose 1.3 percent in the second quarter of 2012 after rising 2.0 percent in the first quarter, according to the third estimate released today by the Bureau of Economic Analysis. The secondquarter growth rate was revised down from the second estimate released in August. Second-quarter highlights Consumer spending decelerated, reflecting a downturn in durable goods, mainly in autos. • Business investment slowed, led by a downturn in spending for power and communication structures. • Residential housing also slowed in the second quarter. Quarter-to-Quarter Growth in Real GDP • Offsetting these reductions in real GDP growth were smaller decreases in federal government spending and in state and local government spending as well as a step-up in exports. 6 4 Percent 2 0 -2 -4 -6 -8 -10 III IV 2008 I II III 2009 IV I II III 2010 IV I II III 2011 IV I II 2012 Real GDP growth is measured at seasonally adjusted annual rates. Revisions to GDP The downward revision to second-quarter real GDP growth reflected a downward revision to inventories, mainly to farm inventories, which were revised down due to this summer’s severe heat and drought. In addition, consumer spending for services was revised down, reflecting a downward revision to finance and insurance. Exports was revised down as well. Personal income and saving Real disposable personal income (DPI), which adjusts personal income for taxes and inflation, rose 3.1 percent in the second quarter, compared with 3.7 percent in the first quarter. The personal saving rate—personal saving as a percentage of DPI—rose to 4.0 percent from 3.6 percent. Quarter-to-Quarter Growth in Corporate Profits Corporate profits Second-quarter corporate profits turned up, rising 1.1 percent at a quarterly rate, following a 2.7 percent decline in the first quarter. 10 Percent Second-quarter nonfinancial profits rose 2.6 percent, and financial profits fell 9.3 percent. Profits from the rest of the world rose 8.3 percent in the second quarter, reflecting a 1.6 percent increase in receipts and a 10.3 percent decline in payments. 20 0 -10 -20 -30 III IV 2008 I II III 2009 IV I II III 2010 IV I II III IV 2011 I II 2012 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 advance estimate of GDP for the third quarter of 2012 will be released on October 26, 2012. Contact: Ralph Stewart or Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce
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