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Tuesday, November 29, 2016 Contact: Jeannine Aversa, (301) 278‐9003 GDP INCREASES IN THIRD QUARTER “Second” estimate of GDP Real gross domestic product (GDP) increased 3.2 percent in the third quarter of 2016, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.3 percentage point higher than the “advance” estimate released in October. In the second quarter, real GDP rose 1.4 percent. Quarter‐to‐Quarter Growth in Real GDP 6 4 Percent Third‐quarter GDP highlights The increase in real GDP partly reflected an increase in consumer spending on household services, notably on housing and utilities. Consumer spending on durable goods also increased, notably on motor vehicles and parts. However, spending on nondurable goods declined. 2 0 ‐2 Exports of goods increased, notably in foods, Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 feeds, and beverages and in consumer 2012 2013 2014 2015 Real GDP growth is measured at seasonally adjusted annual rates. durable goods. Exports of services increased, mainly in travel. In addition, private inventory investment and federal government spending increased. Q4 Q1 Q2 Q3 2016 Offsetting these contributions to growth, housing investment and state and local government spending declined. GDP update The upward revision to third‐quarter GDP growth reflected upward revisions to consumer spending and to housing investment that were partly offset by downward revisions to business investment and to inventory investment. Quarter‐to‐Quarter Growth in Corporate Profits Corporate profits Profits increased 6.6 percent at a quarterly rate in the third quarter after decreasing 0.6 percent in the second quarter. 8 6 4 Percent • Profits of domestic nonfinancial corporations increased 6.5 percent after decreasing 4.6 percent. • Profits of domestic financial corporations rose 11.5 percent after rising 1.3 percent. • Profits from the rest of the world increased 1.6 percent after increasing 10.3 percent. 10 2 0 ‐2 ‐4 ‐6 ‐8 2012 2013 2014 2015 2016 Corporate profits growth is measured as the percent change from the previous quarter. Over the last 4 quarters, corporate profits increased 2.8 percent. BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and regional economic data—are available at www.bea.gov. E-mail alerts are also available. The “third” estimate of GDP for the third quarter of 2016 and a revised estimate of corporate profits will be released on December 22, 2016.
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