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Wednesday, November 27, 2024 Contact: Connie O’Connell, (301) 278-9003 Gross Domestic Product (Second Estimate) Corporate Profits (Preliminary Estimate) Third Quarter 2024 Real gross domestic product (GDP) increased at an annual rate of 2.8 percent in the third quarter of 2024, according to the “second” estimate. In the second quarter, real GDP increased 3.0 percent. The increase in the third quarter primarily reflected increases in consumer spending, exports, federal government spending, and business investment. Imports, which are a subtraction in the calculation of GDP, increased. Contributions to Percent Change in Real GDP, Third Quarter 2024 Real GDP increased 2.8 percent Percentage point contributions 3.00 2.50 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 Real GDP, percent change Consumer spending Exports * Federal government spending Business State and local Inventory investment government investment spending Housing investment Imports Note. Imports are a subtraction in the calculation of GDP; thus, an increase in imports results in a negative contribution to GDP. U.S. Bureau of Economic Analysis Seasonally adjusted annual rates • The increase in consumer spending reflected increases in both goods and services. Within goods, the leading contributors to the increase were other nondurable goods (led by prescription drugs) and motor vehicles and parts (led by used light trucks). Within services, the leading contributor to the increase was health care (both outpatient services and hospitals). • The increase in exports primarily reflected an increase in goods (led by capital goods, excluding automotive). • The increase in federal government spending primarily reflected an increase in defense spending. • The increase in business investment primarily reflected an increase in equipment (led by information processing equipment as well as transportation equipment). • The increase in imports primarily reflected an increase in goods (led by capital goods, excluding automotive). 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. Email alerts are also available. The “third” estimate of GDP, along with an updated estimate of Corporate Profits and an estimate of GDP by Industry, for the third quarter of 2024 will be released on December 19, 2024. Compared to the second quarter, the deceleration in real GDP primarily reflected a downturn in inventory investment and a larger decrease in housing investment. These movements were partly offset by accelerations in exports, consumer spending, and federal government spending. Imports accelerated. Prices Gross domestic purchases prices, the prices of goods and services purchased by U.S. residents, increased 1.9 percent in the third quarter, after increasing 2.4 percent in the second quarter. Excluding food and energy, prices increased 2.4 percent, after increasing 2.6 percent. Quarter-to-Quarter Change in Prices Gross Domestic Purchases Price Index PCE Price Index Gross Domestic Purchases, Excluding Food and Energy PCE, Excluding Food and Energy 4.0 3.5 Percent Change 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2023:Q2 2023:Q3 2023:Q4 2024:Q1 U.S. Bureau of Economic Analysis 2024:Q2 2024:Q3 Seasonally adjusted annual rates Personal consumption expenditures (PCE) prices increased 1.5 percent in the third quarter, after increasing 2.5 percent in the second quarter. Excluding food and energy, the PCE “core” price index increased 2.1 percent, after increasing 2.8 percent. Current-dollar DPI increased 2.3 percent in the third quarter, following an increase of 3.6 percent (revised) in the second quarter. The increase in the third quarter primarily reflected an increase in compensation. Quarter-to-Quarter Change in Disposable Personal Income Real DPI (chained) Current-Dollar DPI 10 9 8 Percent Change Personal income and saving Real disposable personal income (DPI)— personal income adjusted for taxes and inflation—increased 0.8 percent in the third quarter after increasing 1.0 percent (revised) in the second quarter. 7 6 5 4 3 2 1 0 2023:Q4 U.S. Bureau of Economic Analysis 2024:Q1 2024:Q2 2024:Q3 Seasonally adjusted annual rates Personal saving as a percentage of DPI was 4.3 percent in the third quarter, compared with 4.9 percent (revised) in the second quarter. Page 2 of 3 Corporate profits from current production Profits decreased 0.3 percent at a quarterly rate in the third quarter after increasing 3.6 percent in the second quarter. • Profits of domestic financial corporations decreased 0.4 percent after increasing 7.0 percent. • Profits from the rest of the world (net) decreased 8.0 percent after decreasing 3.8 percent. Corporate profits increased 6.1 percent in the third quarter from one year ago. 4.0 Percent Change • Profits of domestic nonfinancial corporations increased 1.1 percent after increasing 4.2 percent. 5.0 Quarter-to-Quarter Change in Corporate Profits 3.0 2.0 1.0 0.0 -1.0 -2.0 2023:Q2 2023:Q3 2023:Q4 2024:Q1 2024:Q2 2024:Q3 U.S. Bureau of Economic Analysis Seasonally adjusted quarterly rates Updates to GDP The update from the “advance” estimate primarily reflected upward revisions to inventory investment and business investment as well as downward revisions to exports and consumer spending. Imports were revised down. For additional details on the estimates, refer to the Technical Note. Page 3 of 3