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TUESDAY, November 23, 2010 GDP GROWTH PICKS UP IN THIRD QUARTER Second Estimate of GDP Real gross domestic product (GDP) increased 2.5 percent in the third quarter of 2010 after increasing 1.7 percent in the second quarter, according to estimates released today by the Bureau of Economic Analysis. The thirdquarter growth rate was revised up 0.5 percentage point from the advance estimate released in October. GDP highlights The acceleration in real GDP primarily reflected a sharp deceleration in imports (a subtraction in the calculation of GDP), an acceleration in inventory investment, and a pick up in consumer spending for services. These contributions were partly offset by a downturn in residential investment and a slowdown in business investment in equipment and software. Revisions Consumer spending, exports, and state and local government spending were revised up. These upward revisions were partially offset by a downward revision to inventory investment. Quarter-to-Quarter Growth in Real GDP 6 4 Percent 2 0 -2 -4 -6 -8 IV 2006 I II III 2007 IV I II III 2008 IV I II III 2009 IV I II III 2010 Real GDP growth is measured at seasonally adjusted annual rates. Corporate profits Third-quarter profits increased 2.8 percent at a quarterly rate, following a 3.0 percent increase in the second quarter. Third-quarter nonfinancial corporate profits increased 2.1 percent, and financial corporate profits increased 10.0 percent. Profits from the rest of the world decreased 1.9 percent. Compared to a year ago, third-quarter corporate profits increased 27.8 percent. Quarter-to-Quarter Growth in Corporate Profits 15 10 5 0 Percent -5 -10 -15 -20 -25 -30 IV 2006 I II III 2007 IV I II III 2008 IV I II III IV 2009 I II III 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 and a revised estimate of corporate profits for the third quarter of 2010 will be released on December 22, 2010. Contact: Ralph Stewart or Thomas Dail (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce
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