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THURSDAY December 20, 2007 GDP ACCELERATES IN THE THIRD QUARTER “Final” Estimate of GDP The “final” estimate of third-quarter economic growth is unchanged from the “preliminary” estimate. Gross domestic product grew at an annual rate of 4.9 percent in the third quarter, following a 3.8-percent increase in the second quarter. Gross Domestic Product (GDP) The acceleration in GDP growth stemmed from accelerations in exports, consumer spending, and inventory investment. In contrast, imports turned up, and housing investment declined more than it did in the second quarter. The “final” estimate of GDP growth incorporates a small upward revision to consumer spending that was offset by a downward revision to inventory investment. Quarter-to-Quarter Growth in Real GDP 6 Percent 4 2 0 IV I 2003 II III 2004 IV I II III 2005 IV I II III 2006 IV I II III 2007 Real GDP growth is measured at seasonally adjusted annual rates. Corporate Profits Third-quarter corporate profits increased 1.8 percent from the same quarter a year ago. Net corporate profits earned abroad increased 36.5 percent. Profits of financial corporations grew 2.6 percent, while profits of nonfinancial corporations fell 8.6 percent. Year-over-Year Growth in Corporate Profits 30 25 Percent 20 15 10 5 0 IV 2003 I II III 2004 IV I II III 2005 IV I II III 2006 IV I II III 2007 Corporate profits growth is measured as the percent change from the same quarter one year ago. 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 2007 will be released on January 30, 2008. Contact: Tom Dail 202–606–2649 Bureau of Economic Analysis, U.S. Department of Commerce