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WEDNESDAY, December 22, 2010

GDP GROWTH PICKS UP IN THIRD QUARTER
“Third” Estimate of GDP
Real gross domestic product (GDP) increased 2.6 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 0.1 percentage point from the “second” estimate released in November.
GDP highlights
The acceleration in real GDP primarily reflected a sharp deceleration in imports (a subtraction in the calculation of
GDP) and an acceleration in inventory investment that were partly offset by a downturn in residential investment
and a slowdown in business investment in equipment and software.

Revisions
The upward revision of 0.1 percentage point to GDP growth primarily reflected an upward revision to inventory investment that was largely offset by a downward revision to consumer spending.

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 corporate profits rose 1.6 percent at a quarterly rate, following a 3.0 percent rise in the second
quarter. Third-quarter financial corporate profits rose 10.4 percent, while nonfinancial profits increased
slightly from the second quarter. Profits from the rest of the world decreased 2.3 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 “advance” estimate of GDP for the fourth quarter of 2010 will be released on January 28, 2011.
Contact: Ralph Stewart or Thomas Dail (202) 606-2649

Bureau of Economic Analysis, U.S. Department of Commerce