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THURSDAY, October 30, 2014 GDP GROWTH MODERATES IN THIRD QUARTER Advance Estimate of GDP Real gross domestic product (GDP) increased 3.5 percent in the third quarter of 2014, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 4.6 percent. Third-quarter highlights The deceleration in GDP growth was more than accounted for by inventory investment, which detracted from growth in the third quarter after adding to it in the second quarter. 4 2 Percent In addition: Consumer spending decelerated, increasing 1.8 percent after increasing 2.5 percent. Spending on nondurable and durable goods both slowed, while services picked up. Business investment rose but not as much as in the second quarter. Investment in structures, equipment, and intellectual property products slowed. Exports of goods and services decelerated. Quarter-to-Quarter Growth in Real GDP 6 0 -2 -4 IV 2010 I II III IV 2011 I II III IV 2012 I II III IV 2013 I II III 2014 Real GDP growth is measured at seasonally adjusted annual rates. In contrast, imports declined in the third quarter after increasing significantly in the second quarter, reflecting downturns in nonautomotive consumer goods and in industrial supplies and materials. Personal income and personal saving Real disposable personal income (DPI), which adjusts for taxes and inflation, rose 2.7 percent in the third quarter after increasing 4.4 percent in the second quarter. Personal saving as a percentage of DPI increased to 5.5 percent in the third quarter from 5.4 percent in the second quarter. Prices Prices of goods and services purchased by U.S. residents increased 1.3 percent in the third quarter after increasing 2.0 percent in the second quarter. Excluding food and energy, gross domestic purchase prices increased 1.5 percent in the third quarter after increasing 1.7 percent in the second quarter. 4 3 Percent Prices of energy goods and services turned down in the third quarter, and food prices slowed. Quarter-to-Quarter Percent Change in Gross Domestic Purchases Prices 2 1 0 IV 2010 I II III IV 2011 I II III IV I 2012 II III IV 2013 I II III 2014 Price growth measured at seasonally adjusted annual rates 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 “second” estimate of GDP and a preliminary estimate of corporate profits for the third quarter of 2014 will be released on November 25, 2014. Contact: Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce
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