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FRIDAY, September 26, 2014 GDP TURNS UP IN SECOND QUARTER Growth rate revised up in the “third” estimate Real gross domestic product (GDP) increased 4.6 percent in the second quarter of 2014, according to the “third” estimate released by the Bureau of Economic Analysis. The second-quarter growth rate was revised up 0.4 percentage point from the “second” estimate released in August. In the first quarter, real GDP decreased 2.1 percent. Second-quarter highlights Exports of notably nondurable industrial supplies and materials and nonfarm inventory investment by motor vehicle dealers accounted for much of the upturn in real GDP. In contrast to these contributions, imports (a subtraction in the calculation of GDP) were higher in the second quarter than in the first quarter. 4 2 Percent In addition, business investment accelerated, mainly in information processing equipment, as did consumer spending, mainly on motor vehicles and parts. Quarter-to-Quarter Growth in Real GDP 6 0 -2 -4 III IV 2010 I II III 2011 IV I II III 2012 IV I II III 2013 IV I II 2014 Real GDP growth is measured at seasonally adjusted annual rates. Revisions The 0.4 percentage point revision to second-quarter GDP growth primarily reflected the following: Business investment was revised up, notably manufacturing structures. Exports were revised up, notably travel services. See the Technical Note for more information. Profits of nonfinancial corporations rose 11.9 percent after falling 7.4 percent. Profits of financial corporations rose 8.0 per- cent after falling 17.1 percent. Profits from the rest of the world fell 0.9 per- cent after falling 6.1 percent. Quarter-to-Quarter Growth in Corporate Profits 15 10 5 Percent Corporate profits Corporate profits increased 8.4 percent at a quarterly rate in the second quarter after decreasing 9.4 percent in the first quarter. The secondquarter increase was the largest since the third quarter of 2010. 0 -5 -10 -15 III Over the last 12 months, corporate profits rose 0.1 percent. IV 2010 I II III IV 2011 I II III IV 2012 I II III IV 2013 I II 2014 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 2014 will be released on October 30, 2014. Contact: Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce
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