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THURSDAY, August 29, 2013 GDP GROWTH PICKS UP IN SECOND QUARTER Corporate Profits Turn Up Real gross domestic product (GDP) increased 2.5 percent in the second quarter of 2013 after increasing 1.1 percent in the first quarter, according to the “second” estimate released by the Bureau of Economic Analysis. The secondquarter growth rate was revised up 0.8 percentage point from the advance estimate released in July. Quarter-to-Quarter Growth in Real GDP 6 4 Percent GDP growth highlights The second-quarter acceleration reflected the following: An upturn in goods exports; nonautomotive consumer goods accelerated, and civilian aircraft and parts turned up. An upturn in business investment, mainly in power and communication structures. 2 These contributions to the acceleration in economic growth were offset in part by an acceleration in imports; autos, engines, and parts turned up. In addition, inventory investment and consumer spending slowed. 0 -2 III IV 2009 I II III 2010 IV I II III 2011 IV I II III 2012 IV I II 2013 Real GDP growth is measured at seasonally adjusted annual rates Revisions The revision to second-quarter GDP growth reflected: An upward revision to exports of goods, mainly nonautomotive capital goods, industrial supplies and materials, and nonautomotive consumer goods. A downward revision to imports; nonautomotive consumer goods and petroleum products were the top contributors. An upward revision to inventory investment, reflecting upward revisions to inventory investment at auto dealerships and general merchandise stores. Offsetting these upward revisions to GDP growth, state and local government spending was revised down. For more information about the second-quarter revisions, see the technical note. Corporate profits BEA’s featured measure of corporate profits rebounded in the second quarter, increasing 3.9 percent after decreasing 1.3 percent in the first quarter. Quarter-to-Quarter Growth in Corporate Profits 20 15 10 Profits of nonfinancial corporations rose 4.2 percent after falling 0.3 percent. Profits of financial corporations increased 3.3 percent after decreasing 0.9 percent. Profits from the “rest of the world” rose 3.4 percent after falling 4.7 percent. Percent 5 0 -5 -10 Compared with second quarter of 2012, secondquarter corporate profits rose 5.0 percent. III IV 2009 I II III 2010 IV I II III 2011 IV I II III IV 2012 I II 2013 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 and a revised estimate of corporate profits for the second quarter will be released on September 26, 2013. Contact: Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce