Thursday, September 14, 2017
National Income and Product Accounts Gross Domestic Product: Second Quarter 2017 (Second Estimate) Corporate Profits: Second Quarter 2017 (Preliminary Estimate)
Real gross domestic product (GDP) increased at an annual rate of 3.0 percent in the second quarter of 2017 (table 1), according to the "second" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.2 percent. The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 2.6 percent. With this second estimate for the second quarter, the general picture of economic growth remains the same; increases in personal consumption expenditures (PCE) and in nonresidential fixed investment were larger than previously estimated. These increases were partly offset by a larger decrease in state and local government spending (see "Updates to GDP" below).
Real gross domestic income (GDI) increased 2.9 percent in the second quarter, compared with an increase of 2.7 percent (revised) in the first. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 3.0 percent in the second quarter, compared with an increase of 2.0 percent in the first quarter (table 1). The increase in real GDP in the second quarter reflected positive contributions from PCE, nonresidential fixed investment, exports, federal government spending, and private inventory investment that were partly offset by negative contributions from residential fixed investment and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased (table 2). The acceleration in real GDP in the second quarter primarily reflected upturns in private inventory investment and federal government spending and an acceleration in PCE that were partly offset by downturns in residential fixed investment and state and local government spending and a deceleration in exports. Current-dollar GDP increased 4.0 percent, or $189.0 billion, in the second quarter to a level of $19,246.7 billion. In the first quarter, current-dollar GDP increased 3.3 percent, or $152.2 billion (table 1 and table 3). The price index for gross domestic purchases increased 0.8 percent in the second quarter, compared with an increase of 2.6 percent in the first quarter (table 4). The PCE price index increased 0.3 percent, compared with an increase of 2.2 percent. Excluding food and energy prices, the PCE price index increased 0.9 percent, compared with an increase of 1.8 percent (appendix table A). Updates to GDP The percent change in real GDP was revised up from the advance estimate, reflecting upward revisions to PCE and to nonresidential fixed investment that were partly offset by a downward revision to state and local government spending. For more information, see the Technical Note. A detailed "Key Source Data and Assumptions" file is also posted for each release. For information on updates to GDP, see the “Additional Information” section that follows. Advance Estimate Second Estimate (Percent change from preceding quarter) Real GDP 2.6 3.0 Current-dollar GDP 3.6 4.0 Real GDI … 2.9 Average of Real GDP and Real GDI … 3.0 Gross domestic purchases price index 0.8 0.8 PCE price index 0.3 0.3 For the first quarter of 2017, the percent change in real GDI was revised from 2.6 percent to 2.7 percent based on revised first-quarter tabulations from the BLS Quarterly Census of Employment and Wages program. Corporate Profits (table 12) Profits from current production (corporate profits with inventory valuation adjustment and capital consumption adjustment) increased $26.8 billion in the second quarter, in contrast to a decrease of $46.2 billion in the first quarter. Profits of domestic financial corporations decreased $29.4 billion in the second quarter, compared with a decrease of $40.7 billion in the first quarter. Profits of domestic nonfinancial corporations increased $64.8 billion, compared with an increase of $3.8 billion. The rest-of-the-world component of profits decreased $8.6 billion, compared with a decrease of $9.3 billion. This measure is calculated as the difference between receipts from the rest of the world and payments to the rest of the world. In the second quarter, receipts increased $8.5 billion, and payments increased $17.1 billion.