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THURSDAY, December 5, 2013 GDP GROWTH PICKS UP IN THIRD QUARTER Growth Revised Up in Second Estimate Real gross domestic product (GDP) increased 3.6 percent in the third quarter of 2013, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.8 percentage point more than the “advance” estimate released the previous month. In the second quarter, the growth rate was 2.5 percent. Quarter-to-Quarter Growth in Real GDP 6 4 Percent GDP highlights In the third quarter, inventory investment picked up notably, accounting for nearly half of real GDP growth. In the second quarter, inventory investment accounted for less than one-fifth of growth. GDP less inventory investment (real final sales of domestic product) rose only 1.9 percent in the third quarter, compared with 2.1 percent in the second quarter. 2 0 Also contributing to the stepup in real GDP growth, imports rose less in the third quarter than in the second quarter. State and local government spending picked up. -2 IV 2009 I II III 2010 IV I II III 2011 IV I II III 2012 IV I II III 2013 Real GDP growth is measured at seasonally adjusted annual rates Offsetting these movements, exports, consumer spending, and business investment each grew at a slower rate in the third quarter than in the second quarter. Revisions The upward revision to third quarter GDP growth was more than accounted for by an upward revision to inventory investment, which reflected newly available Census Bureau data. Strong upward revisions to wholesale trade, retail trade, and mining inventory investment accounted for most of the revision. Business investment was also revised up, mainly reflecting an upward revision to equipment investment. Corporate profits Growth in BEA’s featured measure of corporate profits slowed in the third quarter, increasing 1.8 percent after increasing 3.3 percent in the second quarter. Quarter-to-Quarter Growth in Corporate Profits 20 15 10 Profits of nonfinancial corporations rose 1.1 percent after rising 3.2 percent. Profits of financial corporations rose 1.9 percent after rising 5.7 percent. Profits from the “rest of the world” rose 4.1 percent after rising 1.2 percent. Percent 5 0 -5 -10 Over the last 4 quarters, corporate profits rose 5.6 percent. IV 2009 I II III 2010 IV I II III 2011 IV I II III IV I 2012 II III 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 and a revised estimate of corporate profits for the third quarter will be released on December 20, 2013. Contact: Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce