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TUESDAY, December 23, 2014 GDP INCREASES IN THIRD QUARTER “Third” estimate of GDP Real gross domestic product (GDP) increased 5.0 percent in the third quarter of 2014, according to the “third” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 4.6 percent. Quarter-to-Quarter Growth in Real GDP 6 4 Percent GDP highlights The increase in GDP in the third quarter reflected the following: Consumer spending increased 3.2 percent, compared with 2.5 percent in the second quarter. Spending on both goods and services increased. Business investment rose, notably in transportation equipment and industrial equipment as well as in intellectual property products. Exports of goods increased; industrial supplies and materials was the largest contributor. Federal government spending increased, mainly national defense spending. 2 0 -2 -4 IV 2010 I II III 2011 IV I II III 2012 IV I II III 2013 IV I II III 2014 Real GDP growth is measured at seasonally adjusted annual rates. Revisions The 1.1 percentage points upward revision to the GDP growth rate reflected the following: An upward revision to consumer spending, reflecting upward revisions to health care and recreation services. An upward reward revision to business investment, mainly to structures and intellectual property products. An upward revision to private inventory investment by wholesale trade industries, notably the nondurable goods industry. For more information, see the technical note. Corporate profits Corporate profits increased 3.1 percent at a quarterly rate in the third quarter after increasing 8.4 percent in the second quarter. Quarter-to-Quarter Growth in Corporate Profits 15 10 5 increased 2.5 percent after increasing 11.9 percent. Profits of domestic financial corporations increased 3.6 percent after increasing 8.0 percent. Rest of the world profits increased 4.2 percent after decreasing 0.9 percent. Over the last 12 months, corporate profits rose 1.4 percent. Percent Profits of domestic nonfinancial corporations 0 -5 -10 -15 IV 2010 I II III 2011 IV I II III IV 2012 I II III IV I 2013 II III 2014 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 2014 will be released on January 30, 2015. Contact: Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce
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