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Wednesday, August 29, 2018 Contact: Jeannine Aversa, (301) 278-9003 GDP INCREASES IN SECOND QUARTER “Second” estimate of GDP Real gross domestic product (GDP) increased 4.2 percent in the second quarter of 2018, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.1 percentage point more than the “advance” estimate released in July. In the first quarter, real GDP increased 2.2 percent. Quarter-to-Quarter Growth in Real GDP 6 4 Percent GDP highlights The second-quarter increase in real GDP reflected increases in consumer spending on services and goods, business investment, exports, and government spending, while inventory investment and housing investment decreased. Imports, which are a subtraction in the calculation of GDP, decreased. 2 0 The increase in consumer spending reflected increases in services and in both durable and nondurable goods. Q3 Q4 2014 Q1 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 Q2 2016 Q3 Q4 2017 Q1 Q2 2018 Real GDP growth is measured at seasonally adjusted annual rates. The increase in business investment reflected increases in intellectual property products, structures, and equipment. Updates to GDP The upward revision to the second estimate of GDP growth mainly reflected upward revisions to business investment in intellectual property products and downward revisions to imports. Corporate profits Corporate profits increased 3.3 percent at a quarterly rate in the second quarter of 2018 after increasing 1.2 percent in the first quarter. 6 Quarter-to-Quarter Growth in Corporate Profits 4 2 0 -2 • Profits of domestic nonfinancial -4 corporations increased 5.1 percent after increasing 2.7 percent. -6 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 • Profits of domestic financial corporations 2014 2015 2016 2017 Corporate profits growth is measured as the percent change from the previous quarter. increased 3.8 percent after decreasing 2.1 percent. • Profits from the rest of the world decreased 1.7 percent after increasing 0.8 percent. Q4 Q1 Q2 2018 Corporate profits increased 7.7 percent from the second quarter of 2017. BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and regional economic data—are available at www.bea.gov. E-mail alerts are also available. The “third” estimate of GDP for the second quarter of 2018 will be released on September 27, 2018.
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